Companies that need to sell loans at premiums higher than 102 in order to have enough income will not survive in the new subprime mortgage business, said Brad Bradley, keynote speaker at the SourceMedia Subprime Symposium in Las Vegas. The chief executive of Senderra Funding LLC said the industry is now going through a second weeding out process. The first occurred in 1998, when many of the top lenders, the pioneers of the nonprime business as he called them, were forced out of business. "When the old model goes away, a new model emerges," Mr. Bradley said, pointing out that nonprime will remain a significant part of the mortgage business. The news from Ameriquest, he said, is not the settlement the company entered into with the state attorneys general, but the fact the company has restructured its retail production operations. It realized its old business model was not going to work, he said.
