In order to control profitability growth, it is important for lenders to manage expenses and product quality, according to panelists at the 2nd Annual Subprime Symposium in Las Vegas, sponsored by National Mortgage News and Origination News.Together, the companies on the panel -- Option One Mortgage, First Franklin Financial, Centex Home Equity, and Accredited Home Lenders -- reported a total of $18.2 billion in originations for the first quarter. Growth in origination volumes has caused dramatic margin compression in the past year, the speakers said. Given the growing appetite for products in the nonprime sector, the broker community is developing products that challenge risk portfolios. "You have to have enough data before you roll out new products," said John Vella, chief sales manager at Irvine, Calif.-based Option One. "Lenders in the subprime market will continue to do well if they stick with what's made them successful. Don't be over-conservative, but don't just grow for the sake of growing." Joe McKone, chief operations officer at San Jose, Calif.-based First Franklin, said his company is focusing on infrastructure and the back end of its operations plan. "We are focusing on less and getting more done," Mr. McKone said. "Think about how much you can realistically get done. Prioritize." Option One can be found online at http://www.oomc.com, and First Franklin can be found at http://www.ff.com.
-
While income decreased from the fourth quarter, it accelerated on an annual basis across NVR's building and lending units.
5h ago -
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
6h ago -
Prevention through new building standards and mapping technology aim to keep home insurance rates down but mortgage bankers see challenges.
April 23 -
The mortgage lender and servicer announced that Ranjit Bhattacharjee, a capital markets veteran, and Kevin Barker, a financial analyst with two decades of experience, have joined its ranks.
April 23 -
Because of rising home values, more transactions have proceeds over the federal tax exemption, especially in California, a CoreLogic study found.
April 23 -
Texas Capital Bank wants to bring the Administrative Procedures Act into the case, but Ginnie Mae said the legal proceedings are outside its scope.
April 23