Lenders Still Expanding: Mortgage Industry Insider from MortgageDaily.com

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RISMEDIA, Jan. 17, 2007-Despite more company closings, some mortgage lenders are managing to grow, according to coverage from MortgageDaily.com-a source of online news for the mortgage industry.

The latest real estate finance casualties include a New Century subsidiary — which is downsizing.

Home 123 Corp. has closed two dozen offices since December, a spokeswoman for parent New Century Financial Corp. told MortgageDaily.com. The move resulted in approximately 200 job cuts.

"This was not immediate reaction to the mortgage market," she said. "It was a strategic move."

Clear Choice Financial Inc. announced it is insolvent. More than 100 layoffs at a mortgage lending subsidiary began in December, CEO Chad Mooney told MortgageDaily.com.

"We have been unable to raise additional capital to remain current on our pending obligations," Mooney said in an announcement.

Popular Financial Holdings, a sister company to E-LOAN, announced it will exit subprime wholesale lending. The move will result in the elimination of approximately 627 positions.

But Wells Fargo is growing. Wells Fargo Home Mortgage announced it launched a joint venture aimed at Hispanic borrowers.

In addition, Wells Fargo & Co. will reportedly buy a Northern California-based bank holding company.

And W. J. Bradley Co. has acquired five mortgage companies during the past three years and is "looking to probably acquire maybe another four or five this year," an associate told MortgageDaily.com. "The companies we acquire don't change their names or the way they do business and we let them operate sort of as they've been operating before we took over."

He added that their ultimate goal is to get the acquisitions integrated.

This year, VIP Mortgage Corp. hopes to double branch offices, originations and employees, VIP's CEO told MortgageDaily.com.

"Our ideal branches are maybe two to 10 people all of whom have experience in the mortgage business and have experience doing mortgage
loans," he said.

They are "looking to expand into Pennsylvania, Maryland, Virginia and a
little more in Florida as well."

For more information, visit http://www.mortgagedaily.com.

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