Here is another opinion about HSBC and Solstice Capital: “They had their best month when Kathy Madison came in and shut us down! Why shut it down when itis the future? Because itis not. NRE loans are the future. Along with less branches. Till HSBC can sell the business. It doesn’t make sense to shut down an FHA lending arm like Solstice when itis the future!
Solstice WAS the CHEAP and easy way to push loads of razor thin margin FHA product. Anyone who thinks FHA lending will become the norm and the saving grace within the Bene/HFC brands which are known for their high rate, high cost lending model is just delusional. Add in the cost factor, and it’s just joke that enough FHA business could be done within the branch network to turn a profit. Even at the peak of the market AEs were averaging < 3 super high profit subprime loans. Now there’ll be 2 or 3X that production on the FHA front? Not a chance.”
Related posts:
