Hammered by losses on its subprime business, banking giant HSBC Holdings plans to unload some of its A-minus to D loans, which total in the billions, investment banking sources have told MortgageWire.The bank -- which owns No. 1-ranked subprime lender HSBC Finance -- also plans to stop providing warehouse financing on subprime mortgages, sources said. A bank spokeswoman declined to address both matters, citing company policy "not to comment on speculation." One warehouse executive said, "A client of ours was told by HSBC they are exiting the business and ending their relationship." Two bidders that invest in nonperforming product said they have already approached HSBC about buying its subprime holdings -- but at a discount. (For more details, see the March 12 issue of National Mortgage News.)
