lender rumour/ subprime trouble

By
Mortgage and Lending with kandola mortgage services

 

One industry expert called the Alt-A market "wambly"*, and rumors are rampant about warehouse lenders

putting restrictions on originators selling loans to companies like American Home and Indy Mac. Last week we

had Wells Fargo shutting its nonprime wholesale lending business, laying off 144 workers and reassigning

another 70, but will continue to originate subprime loans directly to consumers through its retail channel.  

Countrywide had their third straight quarterly decline in earnings. HSBC announced that it is bracing itself against

$9 billion in adjustable-rate mortgages that are about to reset and earlier this year upped its loan-loss reserves

by $1.7 billion to cover exposure to the subprime mortgage market. IndyMac, rumored to be the target of

warehouse lender restrictions, said it was "likely there will be some further staffing realignment later this year

and into 2008 (after laying off 400 employees a few weeks ago). GMAC Financial Services said second-quarter

profits fell 63%, and blamed the drop on losses in its Residential Capital LLC home lending unit. The unit lost  

$254 million during the second quarter versus a profit of $548 million a year earlier. GMAC's exposure to the

subprime mortgage market caused the company to post a $305 million net loss during this year's first quarter,

including a $910 million loss at the ResCap unit. Don't shoot the messenger...

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
sub prime mess

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the balloons to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
35,194

raman kandola

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: