Subprime Horror Stories: Mortgage Market Carnage, Foreclosure Hype and More

by: Paul Kedrosky

If you've not been reading National Mortgage News, you should: It's realtime mortgage market carnage. For example, late yesterday People's Choice Financial pulled a filing related to its S-1, and subprime lender Master Financial closed its wholesale division and put the following front and center on its web site:

Effective March 14th, Master Financial will cease its wholesale loan origination operation including accepting new applications for mortgage loans and funding loans in its pipeline.

The preceding is, of course, markedly different from what the company used to trumpet on its front page:

Master Financial makes the loan-qualifying process fast and easy.

Mind you, as Mortgage Bankers Association chair John Robbins pointed out in another story yesterday, there is no doubt consumer groups are hyping the potential foreclosure numbers through the roof (so to speak). There is an important story here, and I hope someone picks it up sooner rather than later.


Finally, for those of you keeping track of such things, here are the fourth-quarter market leaders in sub-prime origination.