Friedman, Billings, Ramsey Group Inc., Arlington, Va., has agreed to acquire nonprime lender First NLC Financial Services, Deerfield Beach, Fla., in a deal valued at $88 million.FBR will pay for First NLC through both cash and stock. First NLC was reacquired by company management in 1999 in conjunction with Sun Capital Partners, Boca Raton, Fla., from IMC Mortgage Co., then of Tampa, Fla. First NLC will become part of FBR's principal investment group, but operate as a wholly owned subsidiary with its current management in charge. FBR is looking to expand the type of mortgage assets it holds in its real estate investment trust portfolio, and plans to portfolio a significant portion of First NLC's production. FBR says it expects average return on equity from nonprime mortgages of 25%-30% over the life of the asset, and thus it intends to allocate between one quarter and one half of its REIT portfolio to these loans in the short term.
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Whether current conditions favor buyers or sellers is up for debate, as economic uncertainty begins to influence consumer behavior, The Real Brokerage said.
3h ago -
Two industry organizations are giving Congress and FHFA reasons to make Fannie Mae and Freddie Mac's pricing more advantageous rather than less attractive.
3h ago -
Mortgage delinquency rates improved during the month, but the share of borrowers late 90 days or more grew as FHA credit quality deteriorated.
10h ago -
Homebuilding industry CEOs said tariff impacts would likely be felt in the back half of the year, but affordability concerns are applying pressure now.
April 23 -
Sen. Dick Durbin, the Senate's No. 2 Democrat, announced he will not seek reelection in 2026, concluding more than four decades in Congress. The Illinois lawmaker leaves behind a notable imprint on U.S. financial policy, particularly regarding swipe fees.
April 23 -
The president said he had "no intention" of firing the Federal Reserve chair and promised that tariffs against Chinese imports would be lowered "substantially."
April 23