DUB
September 29th, 2007, 07:48 PM
Oxford funding sweeps up behind loan crisis
Years ago Oxford Funding helped clean up after the savings and loan crisis, buying up loans from failed thrifts and reselling them.
This summer, three former employees of the firm regrouped and formed a public company under the same name to clean up after the subprime mess.
Skittish lenders and investors who don't want to hold on to portfolios of loans made to people with weak credit are selling them off at discounts to companies like Houston-based Oxford Funding Corp.
Also, banks that must keep sufficient reserves in case the loans default sell to Oxford to free up their money.
Companies like Oxford serve another clean-up function: They help financially stressed homeowners, whose loans they buy from lenders, get back on track by restructuring salvageable mortgages so they can make their payments.
Once the loans are rehabilitated, Oxford sells them to investors for a profit.
"We're doing a good deed, but we're still capitalists at the same time," said Ronald Redd, Oxford's chief executive officer.
Excerpt
http://www.chron.com/disp/story.mpl/business/5174103.html
Years ago Oxford Funding helped clean up after the savings and loan crisis, buying up loans from failed thrifts and reselling them.
This summer, three former employees of the firm regrouped and formed a public company under the same name to clean up after the subprime mess.
Skittish lenders and investors who don't want to hold on to portfolios of loans made to people with weak credit are selling them off at discounts to companies like Houston-based Oxford Funding Corp.
Also, banks that must keep sufficient reserves in case the loans default sell to Oxford to free up their money.
Companies like Oxford serve another clean-up function: They help financially stressed homeowners, whose loans they buy from lenders, get back on track by restructuring salvageable mortgages so they can make their payments.
Once the loans are rehabilitated, Oxford sells them to investors for a profit.
"We're doing a good deed, but we're still capitalists at the same time," said Ronald Redd, Oxford's chief executive officer.
Excerpt
http://www.chron.com/disp/story.mpl/business/5174103.html