Friday, March 30, 2007

First NLC ?

UPDATE: (hat tip to- mrktMaven FL)

First NLC to Shut Some Operations, Lay Off Workers (Update1)
By Vivek Shankar

March 30 (Bloomberg) -- First NLC Financial Services LLC, a mortgage lender owned by investment bank Friedman, Billings, Ramsey Group Inc., said it will close some operations centers because of slowing sales of so-called subprime loans.

The restructuring will involve employee layoffs, Deerfield Beach, Florida-based
First NLC said today in a statement distributed by Market Wire. Spokeswoman Susannah Harter didn't immediately return a call seeking comment.
Subprime borrowers, those with poor or limited credit records or high debt burdens, made up about a fifth of all new U.S. mortgages last year. Late payments on the loans reached a four-year high of 13.3 percent in the fourth quarter, the Washington-based Mortgage Bankers Association said this month.

``These restructuring actions, which include employee layoffs, are being taken in response to reduced origination volumes across the industry and align the companies' cost structure with the current operating environment,'' First NLC said in the statement.

Operations will be consolidated into facilities at Deerfield Beach and Anaheim, California, First NLC said. The company sells mortgage loans in 42 U.S. states.
Shares of Arlington, Virginia-based Friedman Billings rose 1 cent to $5.52 in New York Stock Exchange composite trading today. The stock has fallen 40 percent in the past year.


Offices closed or the whole company?

From Brokers Outpost:

(1)Just got word from my good friend who is an underwriter there that they just shut down the entire office in Tampa, FL.

(2) Call the Downers Grove, Illinois office.. They are closed too

Also, from Brokers Outpost:

(1) They are done. Just got confirmation

From Brokers Universe:

(1) First NLC - Is no more

(2) Well, that may be true, but I work in the Tampa office and we´re finished..... and I´ve heard the same thing about our offices in Illinois

First NLC Financial Services is a top-30 national nonprime residential mortgage lender* known by successful mortgage brokers for its expertise in nonprime. We are a wholly owned subsidiary of Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR), a leading national investment bank with headquarters in the Washington, DC, metropolitan area and offices located worldwide.