2007 Subprime Off 70 Percent

National Mortgage News (05/12/08) Vol. 32, No. 32, P. 1; Muolo, Paul
Subprime origination volumes plummeted 70 percent to $180 billion in 2007, according to a new survey from National Mortgage News and the Quarterly Data Report. Countrywide Financial originated $16.9 billion in subprime loans (down 58 percent) and was followed by Option One Mortgage with $13.9 billion (down 53 percent), First Franklin Financial with $13.6 billion (down 51 percent), Wells Fargo with $13.3 billion (down 52 percent) and Chase with $11.4 billion (down 1 percent). Countrywide is expected to leave the business entirely once it is acquired by Bank of America, Option One and First Franklin have already exited the business, and Wells and Chase have reduced their volumes. The level of lending to consumers with bad credit seen from 2000 to 2007 appears to be a thing of the past now that Wall Street firms have stopped buying and securitizing subprime loans, and more than 200 companies have eliminated the mortgage product or have gone out of business.