MORTGAGE INDUSTRY TID-BITS FOR 2006 - 2007
I got this information from a representative from one of our investors and found it very interesting. I figured I'd pass it on. Take heed folks, we are in line for a very, very, interesting year to come.
Time to Separate The Men From The Boys.
Many of you understand by now - this ain't your father's mortgage business any longer!! And if you have not been able to realize the incredible shift in this market, then you probably never will. In case you have been asleep at the wheel... here are some news tid-bits
E-loan announced it will close their subprime wholesale division
ResMAE listed for sale
Wachovia Corp.'s consolidation of its wholesale operations will result in layoffs
Fieldstone announced that it's closing 5 west coast branches including its Arizona operations.
Mortgage Lender Network (MLN) "stopped funding residential loans"
on 12/29 (they didn't actually say they were closing).
HMIC closed its doors on Dec 20.
As part of a $100 million cost reduction strategy, Sovereign Bancorp exited the wholesale mortgage market.
Own it Mortgage - closed its doors
Sebring Mortgage closed its doors
Axis Mortgage closed its doors
Oak Street Mortgage closed its doors
Right Away Mortgage closed its doors
Secured Funding closed its doors
Loans 123 - Not taking any more business
Aegis Funding (sub-prime) closed its doors (Aegis Wholesale (Conforming and Alt-A) and Home Equity are still open)
Option One - Up for Sale
Meritage Sold to Lime Financial
Mandalay - Closed its doors
Southstar - AE's leaving (a good source stating company cannot meet payroll obligations)
Accredited - OC Regional office production at its lowest levels, rumors they may close by 1st qtr.
Washington Mutual - Multiple Layoffs
Saxon - Layoffs
RFC - Layoffs
Decision One closed 6 regional centers.
Argent consolidated and let 1,000 people go.Currently for Sale
Ameriquest laid off 3,800 and shut 229 retail branches after announcing a $325 million settlement with state's attorneys general for overcharging borrowers.
Bank of American Mortgage laid off 225 locally.
Fieldstone Mortgage closed their Las Vegas branch.
Acoustic Home Loans closed its doors due to a sudden increase in repurchases.
WAMU exited their correspondent business