BOSTON -- Lenders that were bought recently as part of the current takeover wave dealt with their new identities in different ways at the Mortgage Bankers Association's annual convention.
Lomas Information Systems, bought last month by the homeloan unit of Prudential Insurance Corp. of America, exhibited with full force. Its display, which had the look of an Erector set, was about as large as Country wide Funding Corp.'s. The display allowed attendees to try out its computer system under the banner of Lomas -- not Prudential.
Takeover developments affected Chase Manhattan Mortgage's exhibit too. The Tampa, Fla., lender rushed production of a new display that advertised its recent purchases of American Residential Mortgage Corp. and Troy & Nichols. It also handed out tee shirts that said, "A new Chase is dawning."
Opinion was most definitely divided as to the safety and prudence of some low- and moderate-income lending programs. Ralph Mozilo, executive vice president of Countrywide Credit Industries, Pasadena, Calif., is one who thinks that they can be done well and profitably.
Speaking of his experience making and servicing 97% loan-to-value mortgages he said, "Counseling is as important after the closing as before." The approach to servicing the 97% loan is much more hands on, he said. Whereas a conventional borrower may not get a call from a lender for more than a month after becoming delinquent, "we call them on the eighth of the month just to say `is everything okay?'"
It is too early to fully judge the performance of the loans, but the early numbers are encouraging, Mr. Mozilo said, Of loans made between May 1993 and August 1994, the delinquency rates for affordable housing programs was 1.26% as opposed to 0.38% for conventional loans and 1.97% in FHA programs, he added.
The conference was well-attended despite a poor lending market. About 5,500 people showed up, according to the MBA. That's just slightly less than last year's record 5,651. And more than in 1992, when less than 5,000 attended the San Francisco convention.
A secondary market in Reba McEntire tickets developed at the convention. The award-winning country singer was the feature attraction Tuesday night at the gala Club MBA Dinner & Show. A bunch of handwritten notes on a bulletin board on the second floor of the John B. Hynes Veterans Memorial Convention Center offered about 20 tickets to the highest bidders.
The tickets were being deeply discounted. Two tickets, which originally cost $150, were being offered for $50 each, or the highest bid. On another notice, one attendee wrote, "Priced to move." Whereupon someone scribbled, "Very!"
As Sandra Colatrella, director of quality management, GE Capital Mortgage Corp., Cherry Hill, N.J., was speaking about statistical sampling during a convention session, a barber shop quartet began practicing in the room next door.
Ms. Colatrella tried to continue her talk while the harmonizing went on, but soon was forced to stop. About 150 audience members, scattered around the 700-seat ballroom, which was the size of an airplane hanger, sat in subdued confusion.
When the group tore into an upbeat, 1950s-style love song. Ms. Colatrella put on her best smile and said, "We can do a little dancing." And she made a few moves that had her ponytail swinging.
Another panelist, Phillip Schulman, Brownstein, Zeidman & Lore, Washington, leaned into a microphone and said, "We'd like everyone to choose a dancing partner right now." No one did.
James H. Saft contributed to this article.
