Resource Center

Hopeful Signs in Subprime Struggle – Mortgage Industry Insider from MortgageDaily.com

Mortgage Daily

Published On: March 19, 2007

Hopeful Signs in Subprime Struggle – Mortgage Industry Insider from MortgageDaily.com

DALLAS, March 19 /PRNewswire/ As subprime wholesalers continued to exit the market, strategic moves taken by one company sent its shares soaring, according to coverage from https://www.mortgagedaily.com — the dominant source of online news for the mortgage industry.

Investaid Corp. ceased taking applications Thursday, the company’s president told MortgageDaily.com. The exit resulted from instability in the subprime mortgage market.

“The conditions in the market continue to collapse,” Investaid said in an e-mail statement to workers. (https://www.mortgagedaily.com/ClosureInvestaid031607.asp)

As of March 14, Master Financial Inc. suspended its wholesale lending operation, according to a notice posted on its Web site.

Our industry continues to experience rapid change and instability due to the lack of liquidity in the nonprime market,” said a message addressed to the company’s broker customers. “We have to effectively cease our operations and reorganize our business to accommodate the new demands of the secondary market.” (https://www.mortgagedaily.com/ClosureMasterWholesale031607.asp)

Meanwhile, Option One Mortgage Corp. did not meet the minimum $1 million quarterly net income for four consecutive quarters as required in covenants of its committed warehouse facilities, according to an SEC filing last week from parent H&R Block. But it has obtained waivers through April 27 from each of the creditors.

“We anticipate [Option One] will not meet this financial covenant at April 30, 2007,” the filing said. “However, we believe we will be able to obtain waivers for that date from a sufficient number of warehouse providers.” (https://www.mortgagedaily.com/OptionOneProduction031407.asp)

Accredited Home Lenders Holding Co. announced Friday it would sell most of its originations held for sale that are funded by its warehouse and repurchase credit facilities, asset-backed commercial paper facility and equity.

“The $2.7 billion of loans held for sale will be sold at a substantial discount in order to alleviate recent pressures from margin calls,” the statement said.

The deal includes a $40 million holdback reserve for early-payment defaults with no further liability, Accredited said.

Shares of accredited traded more than $2 per share higher following the announcement. (https://www.mortgagedaily.com/AccreditedLoanSale031607.asp)

Complete nonprime coverage at: https://www.mortgagedaily.com/subprime.asp

About MortgageDaily.com
Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.

CONTACT:
Press: Sam Garcia
Subscriptions: Carmen
214.521.1300
3811-700 Turtle Creek Blvd.
Dallas, TX 75219

Source: MortgageDaily.com

FREE CALCULATORS TO HELP YOU SUCCEED
Tools for Your Next Big Decision.

Amortization Calculator

Affordability Calculator

Mortgage Calculator

Refinance Calculator

FHA Mortgage Calculator

VA Mortgage Calculator

Real Estate Calculator

Tags

Pre-Approval Resources!

Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…

Resource Center

Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.

Your mortgages approval starts here.

Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.

Stay Up To Days with Today’s Latest Rates

Mortgage

Today’s rates starting at

4.63%

5/1 ARM
$200,000 LOAN

Home Refinance

Today’s rates starting at

4.75%

30 YEAR FIXED
$200,000 LOAN

Home Equity

Today’s rates starting at

3.99%

3 YEAR
$200,000 LOAN

HELOC

Today’s rates starting at

2.24%

30 YEAR FIXED
$200,000 LOAN