SAN FRANCISCO (Dow Jones) - Units of Cerberus Capital Management LP and National City Corp. stopped taking home loan applications on Monday, becomingthe latest to be hit by turmoil in the mortgage market.
Aegis Mortgage Corp., a mortgage lender that's part-owned by private-equityfirm Cerberus, suspended all loan originations on Monday. Aegis also is unableto fund home loans that are already in its pipeline, spokeswoman Pat Wente said.
The company sent an internal note out on Monday explaining the decision, thespokeswoman added. Part of the problem is that investors in the secondarymortgage market are currently reluctant to buy loans, something many originatorsare struggling with, she explained.
National City (NCC) said on Monday that its National City Home Equity unit hassuspended approvals of addition loans or lines of credit in response to marketconditions.
"This is one of a number of steps National City has taken in recent weeks tohelp ensure that originations are in line with existing and anticipated marketconditions," the bank said in a statement that was e-mailed to MarketWatch. "Weare continuing to closely monitor the market and take the appropriate steps tobest navigate market conditions."
Aegis was the 13th largest subprime mortgage originator in 2006, according toindustry publication Inside Mortgage Finance.
National City was the 13th largest originator of all types of mortgages duringthe first half of 2007, Inside Mortgage Finance data show. National City HomeEquity is just one part of National City .
(END) Dow Jones Newswires 08-06-07 1550ET Copyright (c) 2007 Dow Jones & Company, Inc.
