American Mortgage Network, the San Diego-based wholesaler better known as AmNet, has left the subprime business, according to a source that confirmed published reports.AmNet succumbed to increasing pressures in this line of business, including compressed margins, and felt it could no longer compete with the larger players, the source said. The company, which was started as a conforming wholesaler, entered the subprime business in the first quarter of 2004. Ironically, at the time it entered the business, company chief executive John Robbins said AmNet wanted to be a one-stop shop where its brokers could place all their products. AmNet will still be doing alternative-A mortgage originations as well as home equity loans. According to the company, alt-A loans made up 41% of its volume in November. Subprime, home equity, and second liens totaled 10%. In December, AmNet's parent, AmNet Mortgage Inc., was sold to Wachovia Corp., Charlotte, N.C., which has its own subprime unit, EquiBanc Mortgage Corp. The company can be found online at http://www.amnetmortgage.com.
