Small and mid-sized lenders seeking to compete with the deep-pocketed mortgage banks that dominate the subprime industry are finding solace in an old schoolyard approach: when dealing with a bully, there is safety in numbers. That’s part of the thinking behind Patriot Lenders, a co-operative that aims to help level the playing field through negotiated pricing from vendors and investors. “If people aren’t prepared to do things like join co-ops, they have to ask themselves how they are going to compete,” said Michael Peretz...