Thursday, January 25, 2007

Dropping like flies

Thanks to mozo maz for the tip, Millennium Bankshares is closing down their mortgage business:

Millennium Bankshares shutting down mortgage business

Millennium Bankshares will wind down its mortgage banking business to focus solely on core banking services, the company announced Thursday.

Bank officials say they will delay the release of their year-end financial results until they can determine the costs that will be incurred to close down the mortgage subsidiaries.

The charges would be taken in the fourth quarter of 2006, according to the Reston-based bank, which has seven branches in Virginia, including five in Northern Virginia.

"We were concerned about future volatility in earnings as a result of the soft housing market and wanted to eliminate, going forward, the risks normally associated with mortgage banking activities," says Carroll Markley, Millennium's CEO, in a statement.

Millennium (NASDAQ: MBVA - News) also said Thursday that it will realign some of its branches.

In the second quarter, the bank intends to move offices in Reston and Great Falls to a newly constructed office in Sterling, part of fast-growing Loudoun County. The move is subject to regulatory approval.

"The new site will allow us to expand our footprint into a county in which we have not had a physical presence and one which holds much promise," Markley says, adding that the realignment is expected to lower operating expenses.

Published January 25, 2007 by the Washington Business Journal


RE Bear said...

PHH ( based in MT. Laurel, NJ)Expects Loss of Up to $29M in 2006

“.. On a consolidated basis, we expect to record a pre-tax loss of between $10 million and $20 million and an after tax loss of between $22 million and $29 million for the year ended December 31, 2006″

“… Accordingly, we have taken steps, including a reduction in force, a reduction in IT spending, outsourcing certain back office operations, and a reduction in general and administrative expenses, which we believe will reduce the costs in our mortgage production and mortgage servicing segments by approximately $50 million in 2007.”

In 2005, the company earned $72 million, or $1.34 per share.

PHH Mortgage, previously operating as Cendant Mortgage, is one of the top ten retail originators of residential mortgage loans in the United States

Sorry if this a duplicate.

Bakersfield Bubble said...

Thanks re bear!

Anonymous said...