Thinly-capitalized companies that became aggregators during the "heady days of the cycle" are among those that likely will be challenged by the market environment ahead, a speaker said during a question and answer session at a Bear Stearns conference in New York.When asked what mortgage companies might be displaced given that the cycle appears to be shifting, Bear Stearns senior managing director and head of structured products Tom Marano said it would likely be the aforementioned companies and possibly real estate investment trusts, which have taken a bit of hit and been through a little recovery already. Mr. Marano, who spoke at Bear's Mortgage Finance & Housing Markets Conference, said there are currently a number of originators up for sale that he has heard hedge fund investors tout as holding value. He said that, from his perspective, he has "yet to see one worth buying." Nevertheless, some might be of value to other market participants who have different business models and strategies, Mr. Marano said.

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