Subprime Wholesale Lenders Sebring Capital and Ownit Mortgage Close
On December 1st, Sebring Capital closed down citing market conditions affecting sub-prime origination and securitization. The closing was a disappointment for the 10 year-old company according to Senior Vice-President Michael Waldron. “It was unexpected and unfortunate, and we pursued several different avenues in order to try to avoid this”. Their webpage indicates that all underwriting systems are now shut-down and any loans in processing must close by December 15th.
Sebring Capital, based in Carrollton, TX was launched in 1996 and excelled in sub-prime mortgage purchase loans. The company changed it’s focus in the late 1990s to become more of a non-prime lender. This change included adding a product mix of Alt-A lending products and other non-traditional programs. Sebring Capital partnered with Residential Funding Corporation (RFC) to offer their automated underwriting platform “Assetwise” to Sebring Capital brokers and correspondent.
As of December 5th, it appears that California based subprime wholesale company Ownit Mortgage has also closed it’s business. According to an article on the Originator Times website, A recorded message at several branch offiices now states; “Effective December 5th Ownit closed its doors and we are no longer able to fund or process your loans, we appologize for any inconvenience.”
According to real estate blogger Patrick.net he reposted the text of an e-mail forwarded to him and alledgedly sent by OwnIT Mortgage to their broker partners. In part it states,
“It is with deep regret that we inform you Ownit Mortgage Solutions will cease operations on December 6, 2006. For the past three years, we havepursued a mission to influence the mortgage industry toward increased affordability options for a changing market of home buyers. Change takes time, and we are saddened that the current unfavorable conditions of the mortgage industry did not afford us sufficient time to see our mission through.”
Ownit Mortgage was formerly Oakmont Mortgage Company which was purchased by a Chicago-based CIVC Partners and a group led by industry pioneer Bill Dallas. Mr. Dallas had founded First Franklin in 1981 and led that company to national success as a subprime lender. Ownit Mortgage launched in 2004 after Oakmont posted nearly $1 billion in loan fundings in 2003. That volume grew to nearly $4 billion in 2004 and over $8 billion in 2005.
In December 2005, Ownit Mortgage revamped their wholesale lending platform and automated underwriting technology but apparently that wasn’t enough to keep the company afloat.
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