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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (86522)	8/22/2007 10:53:43 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Seems like anyone who depended on CMO's for funding and wasn't a portfolio lender is cutting back dramatically or shutting down..

To: Smiling Bob who wrote (86522)	8/22/2007 12:16:05 PM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

HSBC to shut mortgage office 600 bank employees in Indiana must leave positions; will be offered severance packages or chance to apply for other HSBC jobs. August 22 2007: 9:10 AM EDT NEW YORK (Reuters) -- The U.S. mortgage unit of HSBC said Wednesday it will close an office in Indiana, a move that will affect about 600 workers, amid a severe downturn in U.S. credit and housing markets. Escalating defaults on U.S. home loans have shaken financial markets worldwide, forcing HSBC (Charts), Europe's biggest bank, to restructure its U.S. mortgage operations and set aside $1.7 billion for loan losses in the first quarter. A prolonged U.S. housing slump has resulted in nearly 88,000 job cuts in the financial services sector, consulting firm Challenger, Gray & Christmas said this week. London-based HSBC will close the office in Carmel, Ind., by the end of the second quarter of 2008, company spokesman Michael Trevino said. The jobs affected include sales and underwriting positions. HSBC Finance has been one of the largest providers of risky subprime loans in the United States. Investors are worried HSBC will rack up more mortgage-related losses in the second half of this year when several billion dollars worth of those loans reset at higher interest rates amid a slumping U.S. housing market. Earlier this year, HSBC consolidated operations within its Decision One wholesale mortgage operation, which relies on independent brokers to find borrowers. Loan processing and underwriting functions were centralized and the number of operating centers was reduced to two from 17. Trevino said the Indiana workers will be offered a chance to apply for other jobs within HSBC, which employs about 60,000 people in the United States. Severance packages also will be offered, he said. Along with HSBC, investment bank Bear Stearns (Charts, Fortune 500) has also taken a substantial financial hit from the subprime problems. HSBC shares edged upward in premarket trade. Top of page Toll takes hit, still in black Subprime's next victim? Auto sales