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First Marblehead Corp (FMD) RSS Feed

Followers
7
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Posts (Total)
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Created
08/18/08
Type
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Profile for First Marblehead Corporation - FMD

The First Marblehead Corporation was formed as a limited partnership in 1991 and was incorporated in Delaware in August 1994. It provides outsourcing services for private education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses, education loan marketers and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members. It receives fee for the services it provides in connection with processing and securitizing the clients' loans. First Marblehead focuses primarily on loan programs for undergraduate, graduate and professional education, and, to a lesser degree, on the primary and secondary school market. The Company enables its clients to offer student and parent borrowers competitive loan products, while managing the complexities and risks of these products. It provides its clients with a continuum of services, from the initial phases of program design through application processing and support to the ultimate disposition of the loans through securitization transactions that it structures and administers. The lifecycle of a private student loan consists of a series of processes which are as follows: Program Design and Marketing, Borrower Inquiry and Application, Loan Origination and Disbursement, Loan Securitization and Loan Servicing. First Marblehead offers prospective clients the opportunity to outsource all of the key components of their loan programs by providing a full complement of services, including program design, application processing, underwriting, loan documentation and disbursement, technical support, customer support and facilitation of loan securitization. It offers service in connection with two primary loan programs: Private label programs and Guaranteed Access to Education, or GATE, programs. The private student loan industry is competitive with dozens of active participants. First Marblehead owns the following federally registered trademarks: FIRST MARBLEHEAD, FIRST MARBLEHEAD, diamond design, GATE, GATE FAMILY LOAN, GATE Guaranteed Access to Education, prepGATE and National Collegiate Trust. It provides services in connection with the creation, management and disposition of education loans, a form of consumer loan asset. This business is regulated at both the state and federal level, through statutes and regulations that focus upon: licensure and examination of industry participants; regulation and disclosure of consumer loan terms; regulation of loan origination processing; and regulation of loan collection and servicing.

Business Trends, Uncertainties and Outlook  (10Q)

Education loan asset-backed securitizations have been the Company's sole source of permanent financing for its clients' private education loan programs. The conditions of the debt capital markets generally, and the asset-backed securities (ABS) market specifically, rapidly deteriorated during the second quarter of fiscal 2008.

 

      Website:  www.firstmarblehead.com

IR contact: Lee Jacobson
Vice President, Investor Relations
(617)638-2186
Email ljacobson@fmd.com


Address: 800 Boylston Street, 34th Flr,The Prudential Towr, Boston, MA, US
Telephone (617) 638-2000
FAX (617) 638-2100
CEO Daniel Meyers
Employees 368
Exchange: NYSE
Market Cap $128 M
Auditors KPMG LLP
Last Audit UQ
CIK 0001262279

Dividends: None

Avg Volume: 656,500

Earning TTM (-4.57)

Industry : credit services

Book value $6.77
NAICS Classification Consumer Lending
SIC Code Personal Credit Institutions (6141)

Outstanding 98.9 M Float 64.4 M
Insider Holdings 34.9% (6/2008)
Institutional Holdings 47% (12/2008)
Total Holdings 43M held by 147 institutions

Union Federal Savings Bank, a federally-chartered thrift located in Rhode Island, is a wholly-owned subsidiary of The First Marblehead Corporation.

 

   

Links:
http://www.firstmarblehead.com 
Download Annual Report








 

This deterioration accelerated during the third quarter of fiscal 2008 and has persisted through May 8, 2009. The Company's business has been and continues to be materially adversely impacted by the current market dynamics, including an inability to access the securitization market or alternative interim financing facilities. The Company did not complete a securitization transaction during the second, third or fourth quarters of fiscal 2008 or during the first, second or third quarters of fiscal 2009, and the Company does not expect to complete a securitization in the near-term. In addition, it expects the structure and pricing terms in future securitizations, if any, to be substantially less favorable than in the past.

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