Virgin set to take over mortgage firms

The mortgage industry has changed a lot in the last four months here in the USA.  Many investors are going out of business and mortgage companies along with mortgage brokers.

A friend of ours was in the middle of buying a home and the mortgage company wanted to increase the down payment from 10% to 20%.  They did this because they were about to go out of business and knew she could afford it.  Also the mortgage company knew that they could easily turn around and sell the mortgage on the open market.  Our friend refused, bought a bigger place with another mortgage company and loves her new place.

Just because the mortgage industry is going thru a tough period right now here in the USA doesn’t mean it is true in other countries.

Richard Branson’s Virgin Money is expanding in the UK and Australia.

VIRGIN Money has revealed it is in talks for the possible takeover of two mortgage distributors in Australia and has flagged that it wants to talk to more, as it attempts to build scale in its credit card and lending businesses.

Chief executive of Virgin Money Australia David Wakeling said yesterday that one acquisition could involve a purchase price of several tens of millions of dollars while the second would be smaller, around several million.

“Theres recognition in Virgin that financial services is a scale game,” Mr Wakeling said, “and we want to build our scale to be more competitive. Its the same realisation that underlies Richard Bransons attempts to rescue Northern Rock in the UK.”

The struggling British mortgage lender is under offer from Richard Branson, the swashbuckling founder of everything from airlines to health clubs and cosmetics to clothing, all under the Virgin Group brand.

Virgin set to take over mortgage firms | The Australian