Option One switches to all Fannie eligible products

As I mentioned in my last post, Option One has switched their underwriting guidelines from subprime to Fannie-eligible only according to this email below. While its understandable, I can't see how you make a profitable business model out of it right now. There are tons of players who have been servicing the A-paper side of things forever; and new players are going to find it hard to gain any foothold at all. Why would you send A-paper stuff to Option One if you're A-paper traditionally goes to Wells Fargo? The only two viable I can think of are 1) pricing and 2) underwriting turn times. Both of these cause big problems for Option One. If the pricing is much better there is little to no profit in each loan; as the margins on agency paper are lean to begin with. Further, fast underwrit