A national mortgage branch operation has launched a program aimed at helping existing borrowers avoid foreclosure -- a market it says is untapped.
Shearson Financial Network Inc. has expanded its Irvine, Calif., facility to handle borrowers with delinquent mortgages, according to an announcement today.
The Las Vegas-based company said it is currently working with warehouse lenders and small mortgage banks to resolve their problem loans.
With information about the delinquent borrowers provided by the note holders, Shearson reportedly contacts the customers and attempts to refinance their loans.
"By expanding this capability into the loan resolution arena, the company has a vast market to tap into and very little competition," the announcement said.
"We are focusing on the portion of the industry that is in trouble," said Shearson Chairman and CEO Michael Barron in the statement. "Instead of facing buy-backs of their loans at a substantial discount, we are able to refinance these same loans."
Shearson estimates their are more than $300 billion of these loans currently held by subprime warehouse lenders and mortgage bankers. Last month, the company announced it was attempting to double its warehouse capacity.
The company, which says it is a mortgage broker consolidator, claims to have already refinanced nearly $100 million in nonperforming loans during the past six months.