| THE SUBPRIME MORTGAGE IMPLOSION UNLOCKS DOORS TO CAREERS IN ...
Pleasant Grove, UT/March 28, 2007/FPSnewswire/ -- It's certainly not "business as usual" in the residential mortgage industry. For some time now, the pressure has been mounting in numerous ways. More brokers than ever are competing for fewer and fewer deals. Loan fees are getting squeezed. More and more borrowers are turning to online lenders who do loans very cheaply. And now, to put the icing on the cake, there's the subprime implosion. Because of secondary market pressure, the most aggressive loan programs are already beginning to disappear - and more will certainly follow. Underwriting guidelines are tightening. Because of this, the pool of borrowers that qualify for loans will continue to shrink even further. "One path that leads to increased income is the commercial mortgage business," says Joe Mardesich, president and CEO of Nationwide Commercial Funding, a national mortgage brokerage.
FIRST TIME BUYER TEN YEAR FIXED RATE MORTGAGE
Scarborough Building Society has this week launched a highly competitive range of 10-year fixed rate mortgages, giving borrowers the peace of mind of controlled mortgage payments over the longer term. The Society's Flexible 10 Year Fix will charge 5.49% until 30 May, 2017 and is available for purchase and re-mortgage - the latter having the benefit of the Society's free legal package. Tony Burdin, Scarborough's Head of Group Marketing: 'With continued uncertainty over interest rates - and the prospect of a further increase in the Bank of England Base Rate on the horizon within the next couple of months - many people are looking for mortgage products offering longer term certainty. 'As a mutual building society, we believe we have a responsibility to cater for this need by offering this product which offers an attractive blend of longer term peace of mind and a competitive interest rate, which is among the best available.
Bradley to buy MortgageTree
Modesto, Calif. - W.J. Bradley Company Merchant Partners LLC, a Denver-based firm that has bought almost a dozen home lenders and brokers, agreed to purchase MortgageTree Lending of Modesto, Calif. Terms weren't disclosed. MortgageTree, founded in 1986, has about 390 employees and 55 retail offices, W.J. Bradley said. MortgageTree made or arranged $788 million in loans last year, including subprime loans. W.J. Bradley, founded in 2003, has been buying up mortgage companies that it says are profitable and need capital. At least 40 mortgage lenders sought buyers or closed operations in the past year amid rising delinquencies and defaults. The closely held company announced plans March 28 to buy SB Financial Inc., a Los Angeles-based brokerage that arranged $650 million of loans in 2006.
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