Going Out of Business......Everyday....

By
Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

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

close

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Anonymous
Mule Nuts
Correction to list above.  Oak Street did not close its doors.  Oak Street was bought by NovaStar Financial and still going strong.
Feb 08, 2007 02:25 PM #29
Anonymous
barbara silver
with lending becoming so competative...I was told that it will go towards a flat fee basis next, similiar to the cut rate realtors such as help u sell and assist 2 sell.
Feb 08, 2007 04:09 PM #30
Ambassador
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
I have saw HUD statements on transactions in which 'cut rate realtors' were involved.  In my experience, that flat rate wasn't a flat rate at all and was no more inexpensive than going with a traditional realtor.  In fact, just yesterday a co-worker commented after reviewing a HUD that one of the so called 'cut rate realtors' charges on there didn't even come close to a flat fee basis.  But, that is another controversial blog in of itself.
Feb 08, 2007 09:05 PM #31
Rainer
119,269
Rob Robinson- Lehigh Valley PA
Bertrum Settlements (Title & Abstract) - Allentown, PA

Ann - just copied a recent blog from Brokeruniverse.com  to toss out what some others are saying in the Mortgage Broker world about Southstar. Seems there was some question in here about their status. My post only added to the 'questons' about Southstar.

No big deal. 

You ever check out Broker Universe?  Thoughts?

Feb 08, 2007 11:53 PM #32
Ambassador
534,090
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
I have checked out Broker Universe, mixed thoughts myself.
Feb 08, 2007 11:57 PM #33
Rainmaker
111,252
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Yes David -  The talk on the street is B of A will purchase Countrywide as soon as they get their deposits in line.

 and  Mule Nuts - word on the street is Novastar is one of those lenders that will be consolidating soon as well ...  not sure they are going so strong

--------------     just what i am hearing    --------------------  LP

         

 

Feb 09, 2007 12:06 AM #34
Rainer
132,211
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

Cut Rate...

I've seen high rate real estate firms now charging fees ON TOP of their full 6/7%!!!!

Feb 09, 2007 01:47 AM #35
Rainer
119,269
Rob Robinson- Lehigh Valley PA
Bertrum Settlements (Title & Abstract) - Allentown, PA

It's nice to see everyone has taken the list with a grain of salt.

This is just 'word on the street' as you can see with a snippit of the Broker Universe blog.....but does tell a 'story'.  The old "Where there's smoke....there's USUALLY a fire"

Feb 09, 2007 05:17 AM #36
Rainer
214,127
Eddy Martinez
Nationwide Funding Group - Highland Park, CA

Last i heard bank of america pulled out of talks with countrywide. But who knows in business anything can happen.

Eddy

Feb 12, 2007 06:31 AM #37
Anonymous
Jeff

Just to let all of you broker people know. The B of A countrywide deal is completely dead. Verified

Feb 14, 2007 12:36 PM #38
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

This came from another contact via activerain....

 I really like your blog, you might want to update that
Silverstate Mortgage with 170 retail Lo's in Las vegas and branches all over the NW region closed their doors yesterday.
It is an interesting year.

Renee Jones
Production Manager
Direct Access Lending

Feb 16, 2007 11:25 PM #39
Anonymous
tweetytiels

Does anybody know anything about Gateway capital mortgage?

Mar 18, 2007 03:06 PM #40
Rainer
119,269
Rob Robinson- Lehigh Valley PA
Bertrum Settlements (Title & Abstract) - Allentown, PA

Geeze Jason - how dare you pass on info about a sound company like Southstar....how dare you !

============================================================== 

Southstar - AE's leaving (a good source stating company cannot meet payroll obligations)

 

 

Apr 02, 2007 05:28 AM #41
Anonymous
Paul Ganem

As the Origination News reports, it looks like Southstar has closed down.  I'm a Mortgage Recruiter and I'd be glad to talk with any of you folks who may have been working for Southstar or looking for a new opportunity (I still have quite a few Alt-A opportunities I represent).

 Feel free to email me at pganem@clcareers.com or call at 865-455-0840

 Good luck to all!

 

Paul J. Ganem

Apply online at:  http://www.clcareers.com/

"Successful Relationships Start with a Clear Line of Communication"

 

Attention Clients / Prospective Clients:  By reading and reviewing any candidate information in this e-mail, you are agreeing to either Clear Line's standard terms of service or those outlined in your client agreement.

 

Attention Candidates:  This e-mail is not intended nor should be construed as an offer of employment or future employment.  Clear Line is not authorized to make such offers on behalf of its clients.

Apr 04, 2007 01:22 AM #42
Ambassador
534,090
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Hey Paul, I'm a Mortgage Originator.  Nice to meet Mr. Mortgage Recruiter.  I burn no bridges in biz and I never worked for Southstar.  Keep in touch.

Rob, I am ridiculous and you know that.  It's all about painting the bread with the peanut butter.  (I'm not entirely sure what that means but somebody said it today and I thought it sounded decent enough.)

May 02, 2007 05:01 PM #43
Rainer
105,415
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group
Hey Jason, look what I found....10 months later.. what do you think now??
Jan 10, 2008 01:43 PM #45
Anonymous
Burned Out Broker
This is a funny post, thought I'd bump it up to the top.  I love the part where the Southstar AE's arguing that their company was so "sound and secure".  I wonder how many LO's are no longer feeling the "fight", since this business officially sucks now.  I left after 8 years.  Sure, I was still getting loans, but I got sick of the deals dying at the closing table.  All of that work to not close anyway. Even had a couple of loans close that didn't FUND because the lenders came in at the last minute and couldn't sell the deal on the secondary market.  This business used to be fun, but more work for less pay...no thanks.  I'd rather work hard and make a lot of money, not struggle to make a check every other month.  Deals take too long now, guideline changes by the minute.  Good luck to those of you that can stick it out, but when I became a BROKEr this wasn't what I had in mind.
Apr 14, 2008 06:15 AM #46
Ambassador
534,090
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Ben - You and me both man....

Mike - I think I'm still here:-)

Burned Out Broker - Yeah, I got some flack for this one:-)  I think once the smoke clears, those still standing....will reap the rewards.  Good luck in your future ventures!

 

 

Apr 14, 2008 06:32 AM #47
Rainmaker
111,252
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

hey guys -  i am still around.... been away from Active Rain but still hanging in    actually have been busy growing my company until this month    as of now - back to last man standing mode~~~~~~~~~~~~

 god bless us all....

 

Apr 14, 2008 06:56 AM #48
Ambassador
534,090
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
Exactly Lewis, good to see your still around!
Apr 14, 2008 06:58 AM #49
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