Items Tagged with 'Consumer finance'

ARTICLES

  • HSBC Cuts US Portfolio by $9 Billion in H109

    HSBC Holdings [stock HBC][/stock] continued to unwind its US mortgage operations in in the first half of 2009 (H109). The firm posted $5bn pretax profit in H109, down 51% from H108, despite heavy losses of $3.7bn in its North American segment. Since it began to run down its US personal financial services including mortgage operations in Q107, HSBC has reduced its consumer finance portfolio by $34bn to $91bn -- by 27% in total -- and by $9bn in H109 alone. The business segment saw a pre-tax loss of $2.9bn in H109.
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  • AIG Buys Popular's Equity One for $1.5 Billion

    AIG unit American General Finance, Inc. will purchase Equity One, the U.S. consumer finance operations of Puerto Rico-based Popular, Inc., in a deal worth $1.5 billion. The sale includes "a signficant portion" of Equity One's mortgage loan and consumer loan portfolio, Popular said in a press statement Wednesday morning. "We are doing the things we have to do in the U.S. mainland as we focus on our core banking franchise," said Richard L. Carrion, CEO at Popular.
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  • Lawyer Up: Firms Launching 'Subprime' Practice Areas

    Lawyers can be marketers too, if the growing trend of national law firms opening up new quasi-practice groups in "subprime" is any indication. The latest is Ballard Spahr Andrews & Ingersoll, LLP, one of the largest law firms in the country, which said Wednesday that it had formed a subprime lending team. The firm said it will pull from its consumer finance, real estate, investment management, bankruptcy, securitization and white collar litigation practice areas in an effort to represent the interests of financial institutions.
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  • Wells Tightens Subprime Loan Criteria; Layoffs to Hit 320

    In response to deteriorating conditions in the subprime market, Wells Fargo Home Mortgage said late yesterday that it has tightened its underwriting criteria for HTLV, high debt-to-income, low credit score and low doc mortgage loans, effective February 16. The change in lending criteria will impact subprime origination volume going forward, according to a memo from Lynn Greenwood, senior vice president of communications over the company's home and consumer finance group, and will drive roughly 320 layoffs at the company's mortgage operation. The Charlotte Observer first reported on this story yesterday afternoon, noting that the company will lay off 250 employees in its Fort Mill, South Carolina-based location. Additional layoffs will be at the company's Concord, Calif.-based location.
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