twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

HSBC Closes Subprime Unit

Decision One closing to result in 750 layoffs

September 21, 2007

By staff

HSBC Finance Corp. will close its subprime wholesale lending channel and take more than $900 million in charges as a result.

The Prospect Heights, Ill.-based company will shut down its Decision One Mortgage subsidiary, according to a filing with the Securities and Exchange Commission today. The company will direct its focus to consumer operations under the HFC and Beneficial brands.

"In recent months, unprecedented developments in the mortgage industry have resulted in a significant reduction in secondary market demand for non-prime loans," the filing said. "Management has concluded that recovery of a secondary market for nonprime loans products is uncertain and at a minimum, cannot be expected to stabilize in the immediate term. As a result, a final determination was made today that our Decision One business will cease operations."

Around 750 people will be laid off as a result of the closing, the filing said. Most of the employees work in Fort Mill, S.C.; Phoenix, Ariz.; and Charlotte, N.C.

Michael Geoghegan, an executive for London-based parent HSBC Holdings plc, noted in the statement that the subprime wholesale unit represented just a small part of its U.S. business.

"It's no longer sustainable and not the right place to allocate capital in the future," he said.

Contractual servicing and support functions will continue to be provided by HSBC Finance as $349 million in current Decision One warehoused volumes is managed down, according to the statement.

HSBC said earlier this year it would close its correspondent acquisition channel and layoff an unspecified number of employees.

In addition to a $760 million credit impairment charge announced in July for the first half of the year in its North American mortgage services business, HSBC said today the closing of Decision One and the abandonment of correspondent lending will lead it to record a non-cash after-tax goodwill impairment of nearly $900 million during the second half of this year. After-tax charges for restructuring costs of approximately $65 million are also anticipated.

HSBC said last month it would close a retail mortgage facility in Carmel by the second quarter of 2008. The subprime center's 600 employees will be given the opportunity to apply for other positions at HSBC, a spokesman said at the time.

Retail branch operations were not affected by today's announcement, HSBC said.

Mortgage Employment News | Employment Index | Employment Statistics
Job additions, layoffs and employment lawsuits. Employment data from the Department of Labor, state tracking, reports and analysis. Job finding tips.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

Wholesale Lending News | Directory | P r i cing Engine | Originator Newsletter
News about wholesale lenders, correspondent lenders and wholesale mortgage lending programs. Alt-A, subprime and other niche loan programs. Lawsuits between wholesalers and brokers.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders