Mortgage banking became more profitable during the second quarter of 2006, although earnings this year are still below the level set during the first half of 2005, according to a new Inside Mortgage Profitability analysis of public company earnings. A group of 31 lenders, including most of the top originators and servicers in the business, reported a combined $3.38 billion in mortgage banking income during the second quarter. That was up 17.8 percent from the… [One data table included]
Read More
Industry consolidation is more than firms merging and people losing their jobs. It also means lenders have to manage shifting office space needs which can cost tens of thousands of dollars should a property lease deal go sour. While national mortgage firms have leased substantial office space in a number of cities, Orange County, CA, is something of a lender mecca. …
Read More
This spring, the Federal Trade Commission broke up one of the nation’s most onerous e-mail spammers – Optin Global. This company was doing business under several shell companies as well, including USA Lenders, USA Debt Consolidation Service and Vision Media. Regulators filed suit in U.S. District Court for the Northern District of California, but the companies’ owner, Rick Yang, and Peonie Chen, president, settled allegations of violating spamming laws without admitting any wrongdoing. …
Read More
Prime lender CitiMortgage has absorbed the non-prime lending operations of corporate sibling CitiFinancial, whose consolidation executives say was motivated to better serve customers. However, the move may have more compelling reasons in saving money, since a consolidation will generate costs savings, such as reducing staff and expensive office space. …
Read More
KeyCorp says it is looking to sell its subprime originator, Champion Mortgage. “With KeyCorp's renewed focus on Community Banking and strengthening our client relationships within our 13-state footprint, Champion no longer fits with our longer-term strategic priorities,” said CEO Henry Meyer. “Given these factors, our best strategic option is to explore the sale of the company.” …
Read More