Subprime Mortgage Market Slimming Down
Diana Heeb Bivona
National City announced that it may sell some mortgage lending units as soon to reduce its exposure to subprime lending as demand for home loans declines. Subprime loans carry higher interest rates because lenders make them to less creditworthy borrowers.
National City is not the first to cut its subprime exposure. Ameriquest Mortgage Co., one of the biggest subprime lenders, said it will fire 3,800 people and shut 229 branches. Additionally, the Mortgage Bankers Association estimates that mortgage originations will decline 18 percent this year to $2.39 trillion, and fall further in 2007 as borrowing costs rise.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.
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