There has been a bit of a controversy about a $2.5 million line of credit that Freddie Mac made to LendingTree, Charlotte, the online loan marketplace, but few realize that LendingTree has yet to draw upon that line. A company official noted recently that LendingTree has borrowed $2 million of a $15 million line made to the company by G.E. Capital. Lending Tree hopes to be profitable in the second quarter...
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When Freddie Mac chairman Leland Brendsel gets a free minute he might want to send some thank you flowers over to his counter-part at Fannie Mae, Franklin Raines. A few years back Fannie Mae sunk $10 million into Homestore.com, which manages online real estate listings through several different websites. At the time industry officials said Fannie rushed to throw money at Homestore.com, in part, because Freddie Mac was about to. (Freddie never did.) Homestore's stock hasn't traded in two weeks and the company is hemorrhaging financially. Fannie owns a little less than 300,000 shares in Homestore.com...
During the height of the dot-com boom Fannie was considering bolting the NYSE for NASDA...
Fannie, by the way, is set to announce fourth quarter earnings on January 14. It also will host a live conference to discuss its results...
Struggling credit card company Providian Financial Corp., San Francisco, said it would cut 800 jobs, or 6.4% if its work force, by the end of next week. In the mid-1990s, Providian was actively shopping for a subprime residential lender but passed on several purchases, including United Companies of Baton Rouge which eventually went bankrupt...
Loan volumes continue to soar at Resource Bancshares Mortgage, Columbia, S.C., which is in the process of being sold to NetBank, Atlanta. Interestingly, when the deal was announced in November both stocks were trading in the $8 a share range and hardly budged in the days following. Today, RBMG is selling for $12 a share...
