Florida Mortgage Firm Buys Subprime Lender
NORTH PALM BEACH, Fla. - CFI Mortgage Inc. said Wednesday that it had acquired PMC Mortgage Co. of Evansville, Ind., a subprime originator.PMC markets loans to consumers with tarnished credit through telemarketing and direct mail. It originated slightly more than $175 million last year.
PMC has call centers in Evansville, Grand Rapids, Mich., and Asheville, N.C., and eight origination offices. It is licensed in 42 states and has 225 loan officers. PMC's founder, Gary Fioretti, will stay on as president and chief executive officer.
GM Finance Company Securitized $2B in Nov.
MINNEAPOLIS - GMAC-Residential Funding Corp., a unit of General Motors, said it securitized $2.1 billion of loans in November, bringing its total securitization volume for the first 11 months of the year to more than $22 billion.About $1.5 billion of November's volume was backed by home equity or subprime loans, the company said.
The finance company ranks No. 1 in issuance in those categories, as well as in private-label mortgage-backed securities, according to Inside MBS & ABS, an industry newsletter.
GMAC-Residential Funding also said it had registered another shelf with the Securities and Exchange Commission for issuing mortgage- and asset-backed bonds.
The new shelf will be used to securitize loans that do not fit the parameters of its other four shelves, which it uses to securitize A-quality jumbo mortgages, alternative-A loans, subprime loans, and A-quality home equity loans.
First Tennessee Unit Offers the 'Motivator'
DALLAS - FT Mortgage Cos., a unit of First Tennessee National Corp., is promoting a subprime loan whose rate can be adjusted downward if the borrower is current with payments for two years.With the Mortgage Motivator loan, if a borrower has not been delinquent for 24 months, the rate is reduced by one point. The idea is to give borrowers with past problems an incentive to improve their credit records, the company said in a statement.
FT Mortgage will make Motivator loans for up to 95% of a home's value, and use an automated underwriting system to review loan applications. The loans will not have the extra fees and prepayment penalties typically associated with the subprime market, the company said.