This entry was posted on Wednesday, August 22nd, 2007 at 3:28 pm and is filed under Housing Bubble, Subprime Meltdown. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
More Lenders Falter
Lehman Brothers announced today the closure of its sub-prime subsidiary BNC Mortgage. Lehman Brothers will continue to originate prime mortgages through its Aurora Loan Services platform but is discontinuing all sub-prime originations.
More sad news from my rep at Accredited Mortgage yesterday afternoon:
I’m sure you’ve all heard the news that we’ve ceased accepting new loan applications. As you can surely guess, this means I am no longer employed. I wanted to thank all of you for your business and wish you the best of luck in the future. My email account will be shut off shortly. If you’d like to stay in touch, here’s an alternate email.
HSBC, Europe’s largest bank, restructured its U.S. mortgage operations and announced plans to close an Indiana office.
Finally, this mysterious communication from Homecomings Financial.
I’m not sure exactly what it means, but to speculate for a moment, it sounds like Homecomings loans will now require a second approval from GMAC who is probably buying Homecomings loans and wants to get a closer look before they purchase. That’s like the old days when loans that required mortgage insurance needed a second MI approval:
Effective immediately, Homecomings Financial will be sharing customer information with its affiliate, GMAC Bank, which will evaluate qualified loan transactions for purchase. Before GMAC Bank can consider a loan for approval, Homecomings Financial must first obtain a complete and signed GMAC Bank Opt In Agreement from all borrowers listed on a loan application in order for the application to be reviewed, processed and underwritten by GMAC Bank. Homecomings Financial will return any loan applications that do not have a complete and signed GMAC Bank Opt In Agreement, which permits Homecomings Financial to share personal information with GMAC Bank. Brokers can obtain the GMAC Bank Opt In Agreement on our web site. Nothing contained herein shall be considered a commitment to lend on the part of GMAC Bank.
It’s more important than ever to work with a experience, professional mortgage broker who can help steer you clear of problems and who has multiple sources of funds.
August 22nd, 2007 at 4:12 pm
Marc,
Thanks for the update. These reports are more discouraging that the savings and loan crisis of the 80’s which was confined to certain regional areas. In some ways this feels like an epidemic OR are lenders finally deciding to exit a segment they considered leaving awhile ago? I don’t know, but it it affecting real people, real families.