Loan Volume Plummets at Morgan Stanley

Morgan Stanley‘s home mortgage lending vividly portrays the drop-off in lending after 2007.

You could say that it plummeted…as in like a lead weight.

Morgan Stanley has made loans through two financial institutions in the last two years.  Saxon Mortgage makes subprime loans.  Morgan Stanley Credit Corporation provides prime credit.  The two lenders could hardly be more different.

MSCC makes conventional loans through its discrete offices located across the country.  Many of its clients are very well off.  Indeed, in 2007, the average income of one of its borrowers was over $192,000.

One banking watchdog group called Saxon “the King of Subprime.” They closed down their shop on Feb. 13th, 2008.  At the time, Saxon was the defendant in more than 34 civil lawsuits, according to a source that cited PACER reports.

In 2007, MSCC made over 8155 mortgage loans.  In 2008, the same institution originated fewer than 500 loans.  Saxon made more than 7,400 loans in 2007.  As recently as November 2007, though, Saxon’s volume had fallen off to less than 200 originations per month.