Duff & Phelps Credit Rating Co. reaffirmed the ratings of GreenPoint Financial Corp.'s subsidiaries after the thrift said last week it would buy Headlands Mortgage Co.
Headlands of Larkspur, Calif., is a "strong fit" for GreenPoint, Duff & Phelps said, and will let the New York thrift deepen its niche residential lending strategy.
Headlands' specialty is "Alternative A" credits, or loans to borrowers with strong credit but some characteristics that do not meet agency standards. Duff estimated the size of the market at $80 billion.
In addition, the mortgage company's predominantly western presence complements GreenPoint's eastern focus, the rating agency said.
Separately, Headlands said its mortgage loan production in November totaled $661 million, a 90% percent increase from November 1997.
Headlands said its November volume included $195 million of agency mortgage loans, $373 million of nonagency loans, $68 million of home equity loans, and $25 million of other loans.
Headlands' mortgage pipeline at Nov. 30 totaled $2.2 billion, an upsurge of 129% in 12 months.