ALERT: This is an email sent out by one of my clients a few days ago. This is a corporate email.
Subprime lenders are good shorts!!! PVN will see 20's and lower!
NASDBULL
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In a September 28, 1998 article in the National Mortgage News,
> executive vice president Sam Cooper of Chase Manhattan Funding
> "...predicted that of the top 25 subprime originators only half may be
> in business within a year" at a meeting of the Housing Roundtable,
> whose topic was, "Is There a Subprime Crisis in the Making?" A list
> of the top 50 subprime lenders has been forwarded to the treasury
> department. If appropriate, the Approved Lender list as to
> uncollected funds may be amended. Managers are reminded of Company
> policies relative to collected funds at Section 1.5 of the Escrow
> Accounting section of the Standard Accounting Policies and Procedures
> Manual. Both the Approved Lender list and the policy statement are on
> the intranet. Select "Departments", then "Financial Administration"
> and then "Standard Accounting Policies and Procedures Manual".
>
> This week has seen CommonPoint Mortgage Company close all but its home
> office without prior notice to most employees and Southern Pacific
> Funding Corporation file a voluntary Chapter 11 petition. While
> CommonPoint only had 40 offices at its peak, Southern Pacific
> securitized $640 million in loans on the secondary market in the first
> quarter of 1998 alone.
>
> A memorandum was sent to states where CommonPoint had offices in. If
> you are aware of a mortgage where XXXXX, XXXXXXX or XXXXXX or an agent funded
> on uncollected funds, please notify XXXXXXXXXX in the Claims
> Department in XXXXXXXX.
>
> In an October 1, 1998 press release, Southern Pacific Funding
> Corporation announced it was filing for reorganization under Chapter
> 11 and continuing to do business as a debtor in possession. They have
> plans for post-petition funding of their loans. The petition did not
> involve Southern Pacific Funding's subsidiaries, namely National
> Capital Holdings, Inc., Oceanmark Financial Corporation, Home America
> Financial Services, Inc., Hallmark America Corp., and its U.K.
> subsidiary, Southern Pacific Mortgage Limited. Effective immediately,
> those entities are to be put on a collected funds basis until further
> notice.
> |
