Subprime Market

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From TWSJ - Investors Default On Outsize Share Of Home Loans - 8/31

"Investors played a big role in pumping up home prices during the housing boom. Now they account for an outsize proportion of loan defaults, mortgage bankers and builders say.
A survey by the Mortgage Bankers Association found that mortgages on properties that aren't occupied by the owner - mostly investment homes - account for between 21% and 32% of defaults on prime-quality home loans in Arizona, California, Florida and Nevada, states where overdue payments are mounting fast. The four states were among the favorites of speculators during the housing boom. When the market was hot, many speculators bought homes hoping to flip them for a quick profit. But now that home prices have turned lower, that strategy is backfiring. As a result, some investors have simply walked away from their mortgages. Investor defaults are likely to add to the spate of foreclosed homes hitting the market over the next year or two, even as much tighter lending standards cut many potential buyers out of the market. Goldman Sachs Group is predicting that home prices will fall an average of about 7% both this year and next." IMHO now is the time to be a buyer and I'm looking for something in the Blue Ridge Mountains of North Carolina.
 
Wait until next year, when a whole new crop of ARMs hit s the reset time.

It will get much, much more bloody, before it gets better in the sub-prime markets.
 
In the vacation markets homes that are not occupied are open for rentals trying to bring in some revenue. There is always a blessing if one looks long enough - opportunities are prevalent for those attentative.
 
Bernanke Says Fed Will Do What's Needed

Friday August 31, 11:54 am ET
By Jeannine Aversa, AP Economics Writer

Bernanke Says Fed Will Act As Needed to Limit Economic Fallout From Credit Crisis

JACKSON, Wyo. (AP) -- Federal Reserve Chairman Ben Bernanke pledged Friday that the central bank will "act as needed" to keep the credit crisis that has unhinged Wall Street from hurting the national economy.

In anxiously awaited remarks, Bernanke didn't specify what the Fed's next move will be but made clear policymakers are keeping close tabs on the problem, which has roiled investors in the United States and around the globe.

Even as Bernanke vowed Fed action, he sought to temper investors' expectations.

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions," Bernanke said. "But developments in financial markets can have broad economic effects felt by many outside the markets, and the Federal Reserve must take those effects into account when determining policy."

President Bush, meanwhile, said the economy was strong enough to deal with turbulence on Wall Street.
Bush, speaking in the Rose Garden, said he was briefed on the financial markets by Treasury Secretary Henry Paulson.

"The markets are in a period of transition as participants reassess and reprice risk," the president said in a rare comment about Wall Street. "This process has been unfolding for some time and it's going to take more time to fully play out. As it does, America's overall economy will remain strong enough to weather any turbulence."
Many believe the odds are growing that the Fed will cut its most important interest rate, now at 5.25 percent, by at least one-quarter percentage point on or before Sept. 18, its next regularly scheduled meeting. The Fed hasn't lowered this rate in four years.

The Fed "will act as needed to limit the adverse effects on the broader economy that may arise from the disruptions in financial markets," Bernanke told an economics conference here.

On Wall Street, stocks rose after the Fed chief's remarks. The Dow Jones industrials were up around 90 points in late-morning trading.

To guide the Fed in terms of what its next move will be, Bernanke said policymakers will pay especially close attention to the "timeliest indicators" as well as information gleaned from businesses and banks around the country. Economic data that was taken before the credit markets really seized up in August will be much less useful to policymakers to assess the country's economic health, he explained.

It was his first speech -- and his most extensive comments -- since the credit crunch took a turn for the worst in August. The carnage in credit markets and the turmoil on Wall Street pose the biggest test of Bernanke's skills since taking the Fed helm 19 months ago.

President Bush was announcing steps Friday to aide homeowners who are having trouble making the payments on risky mortgages.

The Fed's most important interest rate, called the federal funds rate, has been at 5.25 percent for more than a year. Any reduction to this rate would mean lower interest rates for millions of people and businesses. That's why it is the Fed's main tool for influencing economic activity.

After listening to Bernanke's speech, John Makin, principal at Caxton Associates Inc., believed the Fed was moving "a tiny bit closer" to a rate cut.

In his remarks to a high-profile conference here on housing sponsored by the Federal Reserve Bank of Kansas City, Bernanke discussed some of the steps the Fed has taken so far to deal with the credit crunch.

While problems were triggered largely by heightened concerns about higher-risk "subprime" mortgages made to people with blemished credit histories or low incomes, Bernanke said "global financial losses have far exceeded even the most pessimistic projections of credit losses on those loans."

To stabilize wobbly markets, the Fed on Aug. 17 sliced its lending rate to banks by a half percentage point to 5.75 percent. It also has pumped billions of dollars into the financial system to help banks and other institutions get through the credit hump and carry out their business.

The Fed's main concern, however, is the extent to which these problems might short-circuit economic growth.

"The further tightening of credit conditions, if sustained, would increase the risk that the current weakness in housing could be deeper or more prolonged than previously expected, with possible adverse effect on consumer spending and the economy more generally," Bernanke said.

The fear is that if credit continues to become harder for people and businesses to get, spending and investment will be crimped. That could hurt overall economic growth. In a worst-case scenario, the country could slide into a recession. Credit is the economy's life blood. It allows people to finance big-ticket purchases such as homes and cars and can help businesses bankroll expansions and other things that can boost hiring.

After a five-year boom, the housing market went bust last year; problems are expected to persist well into next year as builders try to whittle down a glut of unsold homes.

During the housing slump, a combination of higher interest rates and weaker home values clobbered homeowners, especially those with blemished credit histories or low incomes holding higher-risk "subprime" loans.

With squeezed homeowners finding it impossible to make their mortgage payments or pay them in a timely fashion, foreclosures and delinquencies are soaring and are expected to get worse. Lenders have been forced out of business, and hedge funds and other big investors in subprime mortgage securities also have taken a big financial hit.

Very low initial "teaser" rates jumping to much higher rates as they reset are socking some homeowners. Analysts estimate 2 million adjustable-rate mortgages will reset this year and next. Steep prepayment penalties have made it difficult for some to get out of their mortgages. Some overstretched homeowners can't afford to refinance or even sell their homes.

Most of the carnage has been in the subprime market, but problems have spread to other more creditworthy borrowers. That has sent investors into periods of panic in recent weeks, causing stocks on Wall Street to careen wildly.

Source:
http://biz.yahoo.com/ap/070831/bernanke.html?.v=15
 
When I bought my house the lender told me I could borrow whatever I wanted without income verification. It didn't take a genius to figure out this was a bad lending practice. I think any institution that engaged in this type of practice should be allowed to go under.
 
2 Indicted for Flipping Scheme in California


Thursday, August 30, 2007
2 Indicted for Money Laundering, Theft & Corrupt Activity


Former Ohio Title Agent Indicted for Mortgage-Related Crimes


Wednesday, August 29, 2007
Alaskan Branch Manager Sentenced for Falsifying Information

Monday, August 27, 2007
Appraiser Pleads Guilty in $50 Million Real Estate Investor Fraud


Friday, August 31, 2007
Texan Pleads Guilty to Defrauding Mortgage Lenders
Firooz Deljavan, 56, former owner and operator of Austin Realtors Network, Inc., faces five years in federal prison after pleading guilty to participating in a fraud and money laundering scheme that defrauded federally insured financial institutions and mortgage lenders of more than $15 million.

Appearing before U.S. Magistrate Judge Andrew Austin, Deljavan pleaded guilty to one count of conspiracy to commit mail, wire and bank fraud and one count of conspiracy to commit money laundering.

From March 27, 2001 to January 23, 2004, Deljavan and others instituted a real estate flip-for-profit scheme …

http://www.mortgagefraudblog.com/
 
James48843 said:
Wait until next year, when a whole new crop of ARMs hit s the reset time.

It will get much, much more bloody, before it gets better in the sub-prime markets.
Click to expand...


They say the second thing to go is your memory, can’t remember what the first thing is, or who the heck “They” are but,

I seem to recall that a bunch of arms are due to reset soon. I don’t know how long the fallout from this will take, a month? Maybe two? But it would be interesting to try and guess when the @#%$ will hit the fan or if it’s going to hit.

Does anyone know when the next big reset is going to occur? For some reason I thought it was this month.
 
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Alright, so it looks like we have a bunch resetting into the end of the year and a pretty significant number of subprime ARMs during September, October & December.
 
September 01, 2007

The Writing is on the Wall
by Peter Schiff


This week, Larry Kudlow and others strongly chastised Bernanke for his failure to read the writing on the wall and urged the Fed Chairman to quickly slash the Fed Funds rate. Methinks the pundits doth protest too much. For years, Kudlow, who practically coined the term "Goldilocks economy," has dismissed with scorn suggestions that the American economy was anything less than ragingly healthy. If our economy is really so strong, why does he call so loudly for the artificial stimulus of a significant rate cut?

In truth, the writing has always been clearly on the wall all along. A credit bubble has been steadily inflating for at least the last six years, which in its final frenzy produced some of the most absurd mortgage funding products the world has ever seen. To anyone not dependent on the hysteria, a no-doc, no money down, negative amortization, interest only, adjustable rate jumbo mortgage was a just as clear a sign of pending catastrophe as $200 for a share of Pets.com, or 5,000 Dutch guilders for a single tulip bulb.

The one thing all bubbles have in common is that they eventually pop, and ours just did. Unlike the popping of the last bubble in 2000-2001, this one will fall directly to our economy's bottom line. And this time the Fed can not step up to the plate with unlimited liquidity injections.

A record percentage of our GDP is comprised of consumer spending. The source of this spending was the housing bubble. Would our savings rate really be negative were it not for housing related "wealth?" Could consumers really have spent as much as they did without the benefits of temporarily low teaser rates and the ability to extract equity from their homes? How many service sector jobs are directly related to that extra spending? When the low mortgage payments and home equity disappear, so too will the spending and jobs they engendered.

Those who feel that the economy will keep growing must believe that discretionary consumer spending is unrelated to wealth or expenses. In other words, they believe that individuals will spend as much with no home equity and $3,000 per month mortgage payments as they did with $200,000 in home equity $1,500 monthly payments. Factor in other rising expenses; such as food, energy, insurance, and taxes and discretionary spending will not just slow, it will completely collapse.

With the ugly truth laid bare, many now prod Bernanke and Bush for solutions. Unfortunately there are none. Based on absurd assumptions about real estate, we simply borrowed more money than we can ever hope to pay back. There is no magic elixir we can swallow to cure what ails us. The free market is the only force that can fix this mess. Unfortunately, the fix won't be pretty. Prudent lending standards will return, guaranteeing that real estate prices collapse. This is an important connection that very few have made. There is no way the average American can afford to buy the average house at today's prices with a mortgage he can afford. Assuming that the lax standards of 2005-2006 do not return, the only way this can happen is if real estate prices collapse, which is exactly what is happening.

The financial institutions that are calling most loudly for a bailout claim the Government must act to protect homeowners. However, the most severe losses will not be born by homeowners but by those who loaned them the money. Therefore any bailouts will ultimately go to lenders not borrowers. Homeowners who offered no down payment and who have no equity in their homes will in reality lose nothing in foreclosure, except perhaps a debt burden on an overpriced house. In addition, even those homeowners who made down payments likely extracted larger sums in subsequent refinancings or home equity loans. With plenty of available foreclosed homes on the market to rent it is unlikely that these former homeowners will become homeless.

As a result, the only losses for most homeowners will be psychological, as their dreams of real estate riches vanish. For some paper millionaires, the sudden realization that they are flat broke will be somewhat disheartening. Also for those who thought retirement was simply a function of living in a home and allowing it to appreciate, the sudden realization that they will now have to finance their retirement the old fashioned way, by saving up, will be quite an eye opener. However, even if misguided government bailouts enable more borrowers to keep their homes the equity they thought they had will still be gone.

In the final analysis, though it was Wall Street that served the punch, it was the Greenspan Fed that spiked it in the first place. Just as Fed policy enabled Wall Street to flood the world with worthless dot.com stocks it enabled an encore performance with subprime mortgage-backed securities. My guess is the Fed's bubble blowing days are over. Once the inebriates sober up this time, the hangover will be so severe that no one will drink a drop of Wall Street's punch again, meaning any more inflation the Fed creates will go strait into consumer prices.

For a more in depth analysis of the tenuous position of the American economy, the housing and mortgage markets, and U.S. dollar denominated investments, read my new book "Crash Proof: How to Profit from the Coming Economic Collapse." Click here to order a copy today.


http://www.safehaven.com/article-8312.htm
 
Homes entering foreclosure at record

The housing slump, Midwestern economic woes and resetting ARMs send late payments higher.

By Les Christie, CNNMoney.com staff writer
September 6 2007: 1:26 PM EDT

NEW YORK (CNNMoney.com) -- The delinquency rate for mortgage borrowers spiked higher in the second quarter and the number of homes entering the foreclosure process hit a record high, according to a report released Thursday.

Deliquencies hit 5.12 percent of all outstanding mortgages, up from 4.39 percent a year ago, the Mortgage Bankers Association (MBA) said in a quarterly survey.

Serious delinquencies, those 90 days or more late, jumped to 1.11 percent of all loans, from 0.98 percent in the first quarter.

The loans actually entering foreclosure proceedings stood at 0.65 percent, a rise from 0.58 percent in the first three months - and the highest rate in the MBA's 55-year history. (Latest home prices - 149 markets)

More Americans are falling behind in their mortgage payments as stagnant home prices, auto-industry weakness and climbing interest rates have taken a toll on housing affordability.

The survey revealed steady increases in all categories of delinquencies among mortgage borrowers, but problems in subprime adjustable rate loans drove much of the increase.

"There is a clear divergence in performance between fixed rate and adjustable rate mortgages due to the impact of rate resets," said Doug Duncan, the MBA's chief economist.

Duncan called the delinquency trends "a story of seven states." There are the three midwestern states - Michigan, Ohio and Indiana - where defaults and foreclosures are linked to serious underlying economic and job issues. Michigan alone has lost 300,000 jobs since 2000.

Then there are the once red-hot housing markets of the Sunbelt. According to Duncan, homes entering the foreclosure process in Arizona, California, Florida and Nevada drove the national increase - the national foreclosure rate would have otherwise declined.

"The data shows dramatic effects of speculative investing in those four states," said Duncan. High levels of non-occupied houses there coupled with a high percentage of ARMs made markets particularly susceptible to delinquencies.

Many investors simply do not have the same level of interest in retaining their properties than do owner-occupiers who have, historically, always strived to keep their properties.

Coping with foreclosure

Delinquencies are expected to continue a steady climb for the next year or so. The number of adjustable rate mortgages (ARMs) that reset to higher rates will peak this fall and many of those borrowers will likely fall behind on payments.

Many borrowers in default work out their problems without undergoing foreclosure. Some rework their loans in cooperation with their lenders, often cleaning up arrears by making extra payments later. Others get free of unaffordable ARMs by refinancing into fixed rates.

Many sell their homes before they lose them, especially if they still retain some equity in the properties. Even if there is no home equity, they may get their bank to agree to a short sale in which the bank will forgive the debt not covered by the sale of their houses.

A minority of homeowners will actually go through the entire foreclosure process and their numbers are not forecast to peak until 2008, as homeowners scrambling to find a solution to their unaffordable loans abandon the fight.

The ultimate foreclosure total may be influenced by several of the initiatives being discussed in Washington. President Bush floated some proposals last week that sought to help responsible borrowers stay in their homes.

Bush's proposals, if followed through on, could make it easier for some families to refinance from ARMs into fixed rates.

In addition, regulators recently informed mortgage servicers, which act as liaisons between investors and borrowers, that rewriting the terms of mortgages does not violate accepted accounting practices if it's done for the benefit of the investors. That should remove one of the legal stumbling blocks faced by servicing firms that want to help borrowers by modifying or refinancing their mortgages.

Other proposals - such as increasing cap limits on HUD loans - that offer some relief to troubled homeowners may also reduce the total of loans that actually go into foreclosure.

If, however, the housing-market slump deepens, delinquencies and foreclosures could worsen. And turmoil in the credit markets could tighten the liquidity squeeze that has made it much tougher for many potential home buyers - as well as owners looking to refinance - to obtain loans.

That has caused demand for homes to plunge in many areas and the national inventory of homes on the market has doubled over the past three years. There is now about a nine-month supply of listings at the current rate of sales.

http://money.cnn.com/2007/09/06/real_estate/mortgage_delinquencies_climbing/index.htm?cnn=yes
 
Tales of the crash of 2007

The meltdown in housing prices may not cause a recession, but it's costing some people their homes - and some their marriages, Ben Stein writes in Fortune.

By Ben Stein, Fortune
September 11 2007: 10:20 AM EDT


(Fortune Magazine) -- It doesn't look to me as if there will be a recession - at least not a major recession - from the subprime problems or the credit crunch or any of that panic on Wall Street. But there are effects rippling all over the place right here and now, and some of them are not what you might expect (though some are).

Item: My dear friend B is a broker for super-luxury homes in Scottsdale. He used to be perpetually out of breath from hustling around that lush area showing immense houses and depositing huge checks.


"Now," he says, "I go into the office on Saturdays and Sundays, and I'm literally the only person there. There are dozens of empty cubicles, but their phones never ring. Never. Not once all weekend. It's as if I were down in the desert 100 miles from here. That's how quiet it is."

"Why do you bother going in at all?" I ask.

"If I don't," he says, "there's a 100% chance nothing will happen. At least here by the phone, there's a chance."

Oh, the people you'll blame!
Item: I, your humble servant, am negotiating to buy a condo in Sandpoint in magnificent, super-beautiful northern Idaho. The day I made my first offer, I read a piece in the New York Times that seemed to say that jumbo loans were either unavailable or available only at rates in the range of 13%.

That same day my mortgage broker offered me a 30-year jumbo at 6 7/8%. She said she had money to lend and could do the thing in two weeks. The next day two more lenders called and offered me the same deal. Don't believe everything you read in the papers.

Item: On CNBC there is story after story about the mortgage cutoff and credit crunch. In between are ads for mortgages.

Item: One of my best friends, a blue-eyed, red-haired stunner and a math whiz, is married to a builder and mortgage broker near Naples, Fla. She flew into town, and I had lunch with her today. "How is your husband taking all this stuff?" I asked her.

"He doesn't sleep. At most he sleeps from 5 A.M. to 7 A.M. We built two spec homes near Naples. We spent $2.7 million on each of them. We had them listed for $4 million each. We haven't had one prospect in a year. We lowered the price by a million each. Still no prospects. We're losing $60,000 a month on the two of them. My husband has no business. None. The phone never rings."

"Horrible," I said.

How to marry a billionaire
"I'm leaving him," she said. "He's grouchy all the time. I want a guy who's rich and cheerful all day and all night. Why should I have to suffer because his business is bad?"

"He's your husband," I said. "You have to stick by him."

"Why? I want to laugh and have fun, and he's in a bad mood for months on end. I didn't make this mortgage mess, and I don't see why I should have to suffer for it."

"It won't last," I said. "It never does."

She suddenly looked much more upbeat. "How long until the market turns around?" she asked expectantly.

"Maybe six years," I said.

She looked staggered. "That's it," she sighed. "I want you to start looking for a rich husband for me who's going to stay rich no matter what. Tell him I'll be a really great wife." (She has a killer sense of humor so I am praying she's kidding.)

Twenty-four hours later, as I was driving to Malibu from Beverly Hills, I was called by a woman friend of 37 years who is a psychologist and marriage and family counselor in a suburb of Philadelphia. I told her the story about my friend who's planning to look for a richer husband. She gasped.

"That could be a disaster," she said firmly.

"Because she's breaking up her family over money?"

"No, because what if she leaves him and the mortgage market and the spec home market suddenly turn around and he gets rich again and then she can't find anyone as rich to marry next?"

"Good thinking," I said.

"You have to be realistic," she answered.

Ben Stein is a writer, lawyer, economist, and actor.

http://money.cnn.com/magazines/fort...17/100250263/index.htm?postversion=2007091110
 
That is incredible how CNBC will have analysts warning the public not to get near Countrywide Financial with a 10 foot pole and then at the commercial break, you can see DiTech, Lending Tree and Countrywide advertisements. Actually, I can't think of any companies that advertise on CNBC more aggressively than mortgage lenders.
 
Now up to 156 "Imploded lenders"

"Imploded" Lenders:
156. Long Beach (WaMu Warehouse/Correspondent)
155. Expanded Mortgage Credit Wholesale
154. The Mortgage Store Financial
153. C & G Financial
152. CFIC Home Mortgage
151. BrokerSource (BSM Financial - Wholesale)
150. All Fund Mortgage
149. LownHome Financial
148. Sea Breeze Financial Services
147. Castle Point Mortgage
146. Premium Funding Corp
145. Group One Lending
144. Allstate Home Loans / Allstate Funding
143. Home Loan Specialists (HLS)
142. Transnational Finance Wholesale
141. CIT Home Lending
140. Capital Six Funding
139. Mortgage Investors Group (MIG) - Wholesale
138. Amstar Mortgage Corp
137. Quality Home Loans
136. BNC Mortgage (Lehman)
135. Accredited Home Lenders, Home Funds Direct
134. First National Bank of Arizona (FNBA) Wholesale, Correspondent
133. Chevy Chase Bank Correspondent
132. GreenPoint Mortgage - Capital One Wholesale
131. NovaStar (Wholesale), Homeview Lending
130. Quick Loan Funding
129. National City Home Equity
128. Calusa Investments
127. Mercantile Mortgage
126. First Magnus
125. First Indiana Wholesale
124. GEM Loans / Pacific American Mortgage (PAMCO)
123. Spectrum Financial Group - Wholesale
122. Kirkwood Financial Corporation
121. Lexington Lending
120. Express Capital Lending
119. Deutsche Bank Correspondent Lending Group (CLG)
118. MLSG
117. Trump Mortgage
116. HomeBanc Mortgage Corporation
115. Mylor Financial
114. Aegis
113. Alternative Financing Corp (AFC) Wholesale
112. Winstar Mortgage
111. American Home Mortgage / American Brokers Conduit
110. Optima Funding
109. Equity Funding Group
108. Sunset Mortgage
107. Fieldstone Mortgage Company
106. Nations Home Lending
105. Wells Fargo Alternative Lending Wholesale
104. Entrust Mortgage
103. Alera Financial (Wholesale)
102. Flick Mortgage/Mortgage Simple
101. Alliance Bancorp
100. Choice Capital Funding
99. Premier Mortgage Funding
98. Stone Creek Funding
97. FlexPoint Funding (Wholesale & Retail)
96. Starpointe Mortgage
95. Unlimited Loan Resources (ULR)
94. Freestand Financial
93. Steward Financial
92. Wells Fargo (Correspondent)
91. Bridge Capital Corporation
90. Altivus Financial
89. ACT Mortgage
88. Alliance Mortgage Banking Corp (AMBC)
87. Concord Mortgage Wholesale
86. Heartwell Mortgage
85. Oak Street Mortgage
84. The Mortgage Warehouse
83. First Street Financial
82. Right-Away Mortgage
81. Heritage Plaza Mortgage
80. Horizon Bank Wholesale Lending Group
79. Lancaster Mortgage Bank (LMB)
78. Bryco (Wholesale)
77. No Red Tape Mortgage
76. The Lending Group (TLG)
75. Pro 30 Funding
74. NetBank Funding
73. Columbia Home Loans, LLC
72. Mortgage Tree Lending
71. Homeland Capital Group
70. Nation One Mortgage
69. Dana Capital Group
68. Millenium Funding Group
67. MILA
66. Home Equity of America
65. Opteum (Wholesale, Conduit)
64. Innovative Mortgage Capital
63. Home Capital, Inc.
62. Home 123 Mortgage
61. Homefield Financial
60. First Horizon Subprime, Equity Lending
59. Platinum Capital Group (Wholesale)
58. First Source Funding Group (FSFG)
57. Alterna Mortgage
56. Solutions Funding
55. People's Mortgage
54. LowerMyPayment.com
53. Zone Funding
52. First Consolidated (Subprime Wholesale)
51. EquiFirst
50. SouthStar Funding
49. Warehouse USA
48. H&R Block Mortgage
47. Madison Equity Loans
46. HSBC Mortgage Services (correspondent div.)
45. Sunset Direct Lending
44. Kellner Mortgage Investments
43. LoanCity
42. CoreStar Financial Group
41. Ameriquest, ACC Wholesale
40. Investaid Corp.
39. People's Choice Financial Corp.
38. Master Financial
37. Maribella Mortgage
36. FMF Capital LLC
35. New Century Financial Corp.
34. Wachovia Mortgage (Correspondent div.)
33. Ameritrust Mortgage Company (Subprime Wholesale)
32. Trojan Lending (Wholesale)
31. Fremont General Corporation
30. DomesticBank (Wholesale Lending Division)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ResMAE Mortgage Corporation
24. ECC Capital/Encore Credit
23. Lender's Direct Capital Corporation (wholesale division)
22. Concorde Acceptance
21. DeepGreen Financial
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial
Ailing/Watch List Lenders:
11. Secured Bankers Mortgage Company (SBMC)
10. Impac Lending Group (Wholesale)
9. Delta Financial Corp
8. Countrywide Financial
7. Meridias Capital
6. Option One
5. Ocwen Loan Servicing
4. Doral Financial Corp.
3. Evergreen Investment/Carnation Bank
2. Coast Financial Holdings, Inc.
1. Residential Capital, LLC*

"Imploded" lenders: The "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions.

Ailing lenders haven't shut down, but they're significantly scaling back or are (or recently have been) in manifest financial, legal, or operational distress. Unfortunately, most of the industry now falls under this description, so we are forced to reserve this list for the more glaring cases or those which we happen to have more specific info about.

Note: This site changes rapidly. You should always check other sources regarding information found here, and check with the companies themselves if you plan on doing business with them. And as always, please let us know if you have corrections, clarifications, or additions.


"Non-imploded list":

Sponsored by Waquis. So you think the market is all doom and gloom? Not us. There are actually lenders out there that are operating and focused on smart business fundamentals. Listed below are companies that wish to express that they are still operating in good health and soliciting business:

* Select Lenders Assurity Financial Services (Retail) : Our Grade: A- [FHA Lender - 100% commission payout & 10 bps recruiting income stream!]
* Assurity Financial Services (Wholesale) : Our Grade: A- [No FICO limits on FHA! 65% are manually approved! 18bps to AE's.]
* Key Financial Corporation : Our Grade: B+ [Key Financial Corporation is a true affiliate branch mortgage lender that specializing in FHA loans and superior customer service.]
* Megastar Financial Corporation : Our Grade: A+ [Looking for Net Branch, Branch Mgr or VP that wants to transfer business, LO’s or company to stable environment.]

Want to put your company in this spot? Contact us for pricing ! This section is managed by Waquis Global . Waquis is an off-shore outsourcing company focused on the mortgage lending and banking markets. Our clients are more profitable, efficient, and resilient in a challenging market due to off-shoring in countries like India.

* Charter Lenders Residential Capital Mortgage Income Fund: Our Grade: B/B+ [Residential Capital is a wholesale lender, specializing in a non-FICO-based HELOC for non-prime borrowers. CA only, up to 70% LTV]
* ...

Latest imploded:
Last addition: September 14, 2007.

* Long Beach (WaMu Warehouse/Correspondent)
* Expanded Mortgage Credit Wholesale
* The Mortgage Store Financial
* C & G Financial
* CFIC Home Mortgage

Top Non-Imploded:

* Assurity Financial Services (Retail): A-
* Assurity Financial Services (Wholesale): A-
* Key Financial Corporation: B+
* Megastar Financial Corporation: A+




Source: http://ml-implode.com
 
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Do you like roller coasters? An 8.5% rally yesterday, yet the S&P was down
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