Second Mortgage Home Loan
Piggyback Loans Are Risky Business
What do you call a loan to help someone scrape together enough money to make a down payment on a home just so that person can then qualify to take out a mortgage on that home?
Wall Street's answer: an opportunity to create new securities, of course.
So-called second-lien mortgage loans have found a new home in the portfolios of some of the same money managers and pension funds that have been buying bonds created from mortgage loans made to "subprime" borrowers with less-than-stellar finances.
The creation of all sorts of newfangled mortgages, many of which delay principal payments, has ...
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KeyCorp to Sell Champion Mortgage
Cleveland-based KeyCorp is looking to sell its Champion Mortgage subprime lending subsidiary, the large financial services company said Tuesday.KeyCorp plans to focus on consumer and business banking. KeyCorp's chief executive officer, Henry Meyer, said in a statement that Champion "no longer fits with our longer-term strategic priorities." The bank hired UBS Investment Bank to advise on a possible sale.The bank acquired Champion in 1997. Champion, headquartered in Parsippany, N.J., provides mortgage financing and home equity loans to consumers in 26 states. At the end of the second quarter, Champion's loan portfolio was approximately $2.5 billion.KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $95 billion. For more info, visit www.key.com.