Shearson is one of a few small mortgage company's to survive thru the
mortgage crisis. They did it by closing their wholesale mortgage
business last August. All of their mortgages were discounted, sold and
writtenoff. The affect was a decrease in revenue of 75% but also a
decrease in expense of 83%. Their wholly owned subsidiary, Shearson
Home Loans has posted 19 straight quarters of positive earnings. In
the 3'rd quarter, Shearson Financial, saved the company by entereing
the mortgage resolution business, They service mortgages for much
larger company's, meaning they are given leads to nonperforming loans
and make them saleable. The revenue generated is from service fee's
and Shearson has no responsibilty for the loan. There are supposedly
300 billion dollars in loans in this area and little compitition to
service them.
Shearson had it's share of woe's in this brutal mortgage market. A
reverse split last year left them with a very low float.
That's my input. Does anyone out there have any knowledge or
experience with Shearson that they would like to share. Thanks.