Mortgage Lenders Network Vows to Rally
President Mitchell Heffernan vowed the company would survive and “get back on the growth curve”. MLN is a company that has had tremendous growth over the past 10 years, and is working it’s way out of the largest set back in it’s history.
Heffernan who gave his first interview since the companies troubles started, confirmed that Lehman Brothers Holdings, Inc. will finance the loans closed but not funded with the wholesale division was shut down because of lack of funds. He feels that the company will navigate its way out of the current trouble, because they did not only focus on loans sub-prime credit, they also didn’t loan to those with the most risky credit.
Heffernand also mentioned the fact they were forced to sell hundreds of millions in loans at a loss because they had been closed at rates well below what the market was averaging. He confirmed one executive was fired over the mis-pricing confirming a rumor.
Check out this aritcle in the Hartford Courant today. The paragraphs below are the most important to me in the whole article. They didn’t cut corners on their loans, and they plan to get through this and continue.
Despite its recent troubles, analysts at Bear, Stearns & Co.
Inc. found that underwriting standards at Mortgage Lenders had not
slackened as they had at other competitors, according to a report
issued Tuesday.Heffernan said he believes the company still has a firm foundation,
with a profitable, $19 billion servicing business that collect loan
payments and a more modest lending business in which its employees deal
directly with consumers“We’re going to downsize, rightsize,” Heffernan said. “But we’re going to grow.”
Technorati Tags: Mitchell Heffernan, Lehman Brothers Holdings, Inc., Mortgage Lenders Network
