The Associated Press is reporting that default rates in the US mortgage market are stabilizing.  It seems unlikely that the recent Fed rate cut will do much to affect this number.  Only about 5 percent of all US mortgages are subprime and only about 1/5 of those loans are in default, or around 1% of […]

Nationstar Mortgage, the subprime unit of Fortress Investment Group (NYSE: FIG), has halted wholesale subprime mortgage loans.  No one from Fortress was available for comment.  According to the article, ” Fortress’ subprime operations have become part of a bigger, political story after Democratic presidential hopeful John Edwards said he planned to divest his personal fortune […]

E-Trade (NASDAQ: ETFC) publicly licked its wounds recently lowering its profit forecast by 25% and announcing that it will exit the wholesale mortgage market.  The discount brokers have been long due for some consolidation and many say it was E-Trade’s mortgage end that was holding up a deal with TD-Ameritrade.  Not to confuse the issue, […]