We acquired, as a wholly-owned subsidiary, FFMC in May 2006. FFMC is a full service mortgage company, specializing in “non” or “sub” prime instruments. FFMC was formed in 1997, and has established a reputation for providing fair and equitable loans to individuals with limited access to prime interest rate mortgages. FFMC has grown since its inception, averaging fees of more than $1.5 million over the past 4 years. Over the past decade, FFMC has secured more than 3,500 transactions, comprising nearly $520 million in loan volume.
My question was what banks were involved? Well,
The majority of prime or “A” paper loans are held by large banks and mortgage lenders (i.e. Wells Fargo and Co., CountryWide, and Washington Mutual Bank). While the profit margin on these instruments is somewhat lower than that of sub-prime paper, (i.e., loans made that do not meet Freddie Mac or Fannie Mae underwriting criteria), and Alt-A paper (a mortgage categorization that falls between prime (A) and sub-prime, but closer to prime, also referred to as “A” minus), the associated risk and service requirements are far less, so large lenders are able to generate substantial revenues by virtue of the volume of loans they underwrite. One of the primary factors in growth in the mortgage industry is the impact of Sub-prime and Alt-A lenders.
Well the the incentive for getting in the mortgage business in Indiana:
In 2005 there was approximately $125 billion dollars in mortgage originations in the State of Indiana; the data for 2006 is not yet available. There is substantial competition on both the national and local level and the Company originates only a small portion of all loans originated in the areas in which it is licensed.And was able to secure a $5 million dollar line of credit from National City Bank, according to the document.
The name changes are numerous, I will list those laters.
No comments:
Post a Comment