Content area
Full Text
Originations by subprime wholesalers fell 12% last year as the market began a historic correction tied to rising delinquencies, loan buyback woes and a profound emphasis on credit quality - and capital. (See related table on page 40.)
According to exclusive survey figures compiled by Origination News and the Quarterly Data Report, subprime wholesale production fell 12% to $327 billion. (The figures represent volumes reported by 41 firms.)
Just two subprime wholesalers among the top 10 showed an increase in production - New Century Financial Corp., Irvine, Calif. ($47 billion/up 3%), and WMC Mortgage, Burbank, Calif. ($29 billion/up 7%).
But both those firms are now a shadow of their former selves. NCFC is in bankruptcy, its assets subject to liquidation so creditors can be paid....