Decision One Not The Source of HSBC Subprime Problems

Decision One was a big middleman in the subprime industry. It originated loans through thousands of brokers and then sold those loans to firms that bundled them and sold them as mortgage-backed securities. Decision One was “a huge buyer,” said Chris Freemott, president of All American Mortgage, a mortgage broker. “The subprime-mortgage market — as …

Barclays risks loss in sale of sub-prime arm

Barclays FirstPlus portfolio mostly comprises second mortgages – loans secured against the borrower’s home, over and above a mortgage. In an environment of falling house prices, these loans effectively become unsecured borrowings – and are one of the segments of the market where bankers are becoming increasingly nervous. Industry sources believe Seegers is minded to …

HSBC Shuts Down Decision One Mortgage

HSBC Holdings PLC, Europe’s biggest bank, said yesterday that it would close its U.S. subprime mortgage unit, cutting 750 jobs and taking $945 million (U.S.) in charges and writedowns, because the business is no longer sustainable. HSBC Finance, the United States consumer finance arm of HSBC, said the closing of Decision One Mortgage would result …