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Update: HSBC did, in fact, shutter Decision One today in an announcement. The move will affect 750 workers. Read Bloomberg’s coverage here.
Rumors have been swirling over at thetruthaboutmortgage.com and ml-implode.com that voices within Decision One have confirmed that HSBC is planning on shuttering the company tomorrow. From thetruthaboutmortgage.com:
I?ve received multiple e-mails today from sources close to Decision One who say the lender will be shutting its doors tomorrow.
The subprime lending unit of HSBC has been struggling like many other wholesale mortgage lenders in recent months, and it looks like they may finally be calling it quits.
I reported Decision One layoffs just over a week ago after a source mentioned that the lender had cut a few hundred employees and closed its Phoenix sales center.
HSBC acquired D1 (as Decision One is known) in 2003. The subprime lender was known for getting “tricky loans” done and from the people I spoke with was often a lender of last resort; known for their wide-open underwriting guidelines. That notoriety can’t bode well for loan performance and profit for the recent loan vintages. If you have more information on this story please leave it in the comments or email me directly.
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