Mortgage insurance will be tax deductible for some home buyers (Pittsburgh Post-Gazette)

Labels: mortgageinsurance, PMI, PMImortgageinsurance

  ¶ Mortgage insurance will be tax deductible for some home buyers (Pittsburgh Post-Gazette) 0 Comments

Millenium Holding Group Announces Agreement to Develop Real Estate in Barstow, California (Market Wire via Yahoo! Finance)

Labels: Bakersfield, Barstow, MilleniumHoldingGroup

  ¶ Millenium Holding Group Announces Agreement to Develop Real Estate in Barstow, California (Market Wire via Yahoo! Finance)

Ownit - California sub prime lender closes 800 laid off Ownit Mortgage Solutions, a California company that described itself as one of the top 15 lenders to homeowners with weak or no credit histories, has shut down, citing "the current unfavorable conditions of the mortgage industry."

Merrill Lynch & Co. (MER) and private equity firm CIVC Partners hold stakes in Ownit, which built its book of new loans to $8.3 billion in 2005 from $1.1 billion in 2003, in part by introducing products like 45-year mortgages, according to its Web site. Ownit's demise comes as subprime mortgage lenders are being squeezed by higher funding costs, weakening loan demand and rising delinquencies.
"Effective Dec. 5, Ownit closed its doors, and we are no longer able to fund or process your loans," the company said on a recorded telephone message. "We apologize for any inconvenience."

Ownit ran out of cash needed to meet its obligations to repurchase loans from investment banks and others who bought them in the secondary market, people in the industry said. The banks, which convert the loan payments into mortgage-backed securities for sale to investors, can force the original lenders to repurchase loans if the mortgage borrowers default.

Bruce Dickinson, Ownit's chief operating officer, said he couldn't immediately comment pending discussions with lawyers.

In a letter to mortgage bankers and other business associates emailed Dec. 5, Ownit said, "For the past three years, we have pursued a mission to influence the mortgage industry toward increased affordability options for a changing market of home buyers. Change takes time, and we are saddened that the current unfavorable conditions of the mortgage industry did not afford us sufficient time to see our mission through."

Worsening conditions have pushed many owners of subprime mortgage firms to try to sell the businesses. Morgan Stanley (MS) bought Saxon Capital Inc. for $706 million earlier this month and Merrill plans to complete its $1.3 billion purchase of First Franklin Financial Corp., a large subprime lender that is owned by Cleveland-based National City Corp. (NCC) in the next few weeks.

National City bought First Franklin, which together with affiliates has $29 billion of mortgage loans, from its founder Bill Dallas, who went on to become chief executive of Ownit. Dallas didn't return a call for comment.
Merrill is believed to own about 20% of Ownit. A Merrill Lynch spokeswoman declined to comment. CIVC Partners, a Chicago-based private equity firm, also has a stake in Ownit and was an investor in First Franklin before Dallas sold it to National City. CIVC's Dan Helly, who oversees the Ownit investment, didn't return a call for comment.

The end came quickly for Ownit. "We were all working yesterday, assuming we were fine," Dave Hanthorn, a New Jersey-based employee who sells the firm's loans to mortgage brokers, said Wednesday evening. "At 5:15 last night we got the call that we were ceasing operations." He said the company gave no explanation for its funding problems.

Ownit laid off all its staff, according to a headhunter, who received an email that was reviewed by Dow Jones from a friend who worked at the firm. A voicemail message at the number of LesLee Delaney, a representative of Ownit in California, said the company will help mortgage brokers and other wholesale customers try to get their loans transferred to other lenders.

Labels: Ownit, Subprime, subprimemortgagecalifornia, subprimemortgagelending

  ¶ Ownit - California sub prime lender closes 800 laid off 0 Comments

LoanWeb Honored by Los Angeles Business Journal

LoanWeb Honored by Los Angeles Business Journal (PR Web)

Online mortgage marketing company recognized in top 100 fastest-growing.

Despite the LA Business Journal mostly being a vanity publication, it's refreshing to see a company like Loanweb continuing to thrive in today's tough market. Loanweb was one of the first brokers to really embrace the internet as a lead generation tool. They are based in Calabasas and have been doing online loan applications since 1996.

Labels: Calabasas, LABusinessJournal, Loanweb, loanweb.com, southerncalifornia

  ¶ LoanWeb Honored by Los Angeles Business Journal 0 Comments