Subprime Lender Linking to Fannie

Saxon Mortgage, Glen Allen, Va., which has been funding nonconforming product for as long as anyone can recall, is jumping into the 'A' paper market by aligning itself with Fannie Mae.Company chief executive Mike Sawyer told MortgageWire that Saxon hopes to be up and running with its conforming option for borrowers by the end of May. "We'll sell the loan to Fannie and the servicing to someone like Countrywide," he said. According to fourth-quarter figures compiled by the Quarterly Data Report, a MortgageWire affiliate, Saxon is the 22nd-largest subprime lender in the United States. The nondepository went public about 18 months ago and trades at about $15 a share, $2 shy of its 52-week high. Its low is $8.15. (For more details, see the May 5 issue of National Mortgage News.)