| MDMC Ends Year of Explosive Growth
SUSSEX, Wis.--(BUSINESS WIRE)--MDMC, a mortgage loan analysis firm that provides due diligence and agency delivery services to companies throughout the country, announces a 28 percent growth in revenue for 2006. In response to this growth and to meet growing demand, the company has opened an additional operations center and significantly increased the number of employees. MDMC reviews a variety of newly originated mortgage loans and seasoned bank portfolios, including prime, alt-a, subprime, home equity and reverse mortgage loans "The past year was very significant for MDMC in terms of our growth in both revenue and capacity," explained Kent Loehrke, principal for MDMC. "We completed a number of jobs of 3,000 loans or more for several top 10 Wall Street investment firms. In 2006 we increased our capacity by 460 percent in our centralized underwriting facility and we also created a quality control module as part of our continued commitment to maintaining a high level of quality." To accommodate the growth, MDMC has added an operations center in Las Vegas.
Mortgage trap hits seniors
In a written submission to a Federal Inquiry into Older People and the Law, the State Government says more information is needed about the risks of reverse equity mortgages. Reverse mortgages are often aimed at homeowners aged 60 and over who want money for a car or a holiday or even to fund a move to a retirement home. Queensland's Seniors Minister Warren Pitt said the mortgages were now being promoted heavily, and financial analysts said the trend would increase rapidly over the next decade. "Older people are not always made aware of the compounding effect of interest and other charges associated with these offers and the potential for the value of the asset to be eroded over time," Mr Pitt wrote. Financial advisers say the most important protection in a reverse mortgage contract is "no negative equity guarantee".
Subprime loans put state in spotlight
A potential meltdown in the subprime mortgage market has economists calling for more slowing in the housing market. Not surprisingly, delinquency and foreclosure rates released last week are much higher for subprime borrowers.
How many homeowners have subprime loans in a metro area and how far behind those borrowers are on their monthly payments will dictate how much more these risky loans could drag down the housing market.
What has some watching Arizona is its high ranking for subprime loans, No. 2 nationally, only behind Nevada, according to the Mortgage Bankers Association of America. Almost 17 percent of all homeowners in Arizona have subprime loans. In Nevada, the rate is 19 percent. Florida is No. 3 with about 16 percent. .
|
