Most Admired Mortgage Companies

GE tops FORTUNE 2006 ranking
By COCO SALAZAR
3/10/2006

Thousands of U.S. executives were recently surveyed about the top companies in their peer group, and the parent of a nonprime mortgage lender continued to rank highest.

FORTUNE magazine announced the 2006 ranking of America's Most Admired Companies.

The annual list of the nation's most admired is reportedly based on surveys of 10,000 executives, directors, and securities analysts who rate the 10 largest firms by revenues in their own industries using the following eight criteria: social responsibility, long-term investment value, employee talent, quality of products or services, innovation, use of corporate assets, financial soundness, and quality of management.

Berkshire Hathaway retained its position as America's seventh most admired company overall and the most admired in the stock insurance industry. The Nebraska-based company stepped into the mobile home sector when it purchased manufacturer Clayton Homes, whose finance units are Vanderbilt Mortgage and Finance and 21st Century Corp.

At No. 17, was American Express, which says it provides mortgages through American Express F.S.B., followed by Goldman Sachs Group in the 18th spot.

In the mortgage services sector, the top three most admired companies retained the positions they earned in the previous year's ranking.

Golden West Financial Corp. was once again the most admired. The Oakland, Calif.-based thrift reported it received this honor last year, as well as in 2003, and that prior to that time it was voted the nation's most admired savings institution seven times.

"This distinction is indicative of our success in meeting the needs of the nation's homeowners, utilizing the talents of our employees, and serving the interests of our shareholders." Golden West Chief Executive and Chairman Herbert M. Sandler said in an announcement. "The company has a long history of excellent performance that has received public recognition."

Golden West also noted it placed 10th overall in the use of corporate assets among the companies in the FORTUNE survey.

Countrywide Financial Corp. again took the silver medal and Washington Mutual retained spot No. 3.

Other contenders in the mortgage services industry were Stewart Information Services, which placed fourth, followed by LandAmerica Financial, First American Corp., Freddie Mac, Fannie Mae, Fidelity National Financial and Sovereign Bancorp, according to the magazine.

In the mega-banks sector, Wells Fargo took the gold medal out of Bank of America's hands and bumped BoA to second place, while Citigroup remained in third place, the magazine said. Wachovia Corp. placed fourth, followed by U.S. Bancorp, Chase Manhattan Corp., National City Corp. and SunTrust Banks.

The most admired mortgage-related company in the super-regional banks industry was Bank of New York Co. Second place was taken by M&T Bank. Others included BB&T Corp., PNC Financial Services and Mellon Financial Corp.

KB Home was the most admired mortgage-related company in the homebuilders sector. Pulte Homes took Lennar out of the top three and placed second, while Centex, parent of CTX Mortgage and Centex Home Equity Corp., fell out of the top spot and replaced KB Home in third place on this years' list.

General Electric placed No. 1 on the complete list.

This is the sixth time the parent of WMC Finance Co. has been named the most admired company in the past decade, last reaching the top slot in 2002, according to the magazine.

But why is GE the most admired, considering that it is neither the biggest, the most profitable, the fastest growing, nor the most valuable, and its stock has been practically inert for years?

FORTUNE says the answer lies in that the survey "is a poll not of consumers but of businesspeople working in the same hard world as GE."

"Through good years and bad, GE consistently does things the rest only wish they could," the magazine said. "For the past century or so, for example, GE has continually set the agenda of management ideas and practices that other companies will follow. Practically everyone in business realizes this. GE's record of being ahead of the game is remarkable."

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