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This list is from an email from a local title company:
Here is the list…last updated on August 20, 2007
Latest update: Sea Breeze Mortgage Services, Inc. appears to be closed
Aegis Funding – closed, seeking bankruptcy protection
Accredited – buyout from Lone Star in jeopardy
Acoustic Home Loans – closed subprime wholesale lender
ACT Mortgage – suspended all submissions/fundings until further notice
Alliance Bancorp – closed
Alterna Mortgage – closed
Alternative Financing Corp. – wholesale division closed
American Home Mortgage – closed
Ameriquest – laid off 3,800, closed 229 retail branches after $325 million settlement
Amstar Mortgage Corp. – most of staff at corp. headquarters in Houston being laid off
Argent – for sale
Aurora Loan Services – layoffs at this Lehman Brothers lender
Axix Mortgage – closed
Bank of America – Countrywide merger possibility, continued layoffs
Bear Stearns – closed two hedge funds after huge subprime losses, 240 subprime layoffs
Blackstone Group – buying PHH Mortgage
BNC Mortgage LLC – layoffs, consolidated with Aurora Loan Services
Broad Street Mortgage – sold to Wausau Mortgage Corp.
Calusa Investments – website down, thought to be closed
Capital One Mortgage – 2,000 layoffs planned nationwide
Charter Funding – believed to be closed by parent First Magnus Financial
Choice Capital Funding – rumored to be closed
Citadel – buying ResMAE
Citigroup – bought ABN AMRO Mortgage Group, mulling acquisition of Argent Mortgage
Clear Choice Financial – in default, Bankruptcy possible
Columbia Home Loans – closed
Concorde Acceptance – rumored to be closed
CoreStar Financial Group – closed
Countrywide – layoffs in subprime , may be bought out by Bank of America
Dana Capital – closed
DB Home Lending – rumors are stirring
DeepGreen Financial - closed
Decision One – closed six regional centers
Deutsche Bank Correspondent Lending Group – consolidating business to MortgageIT
Ditech – layoffs
Domestic Bank – shutting down wholesale unit
E-loan – closed sub-prime wholesale division
ECC Capital/Encore Credit – sold to Bear Stearns, 100 layoffs announced Aug. 17
Entrust Mortgage – closed
Equibanc – closed by Wachovia
Express Capital Lending – not accepting new submissions until further notice
Fannie Mae – hundreds of layoffs coming
FBR – selling subprime unit
Fieldstone Mortgage – closed Las Vegas branch
First Community Bancorp – layoffs
First Indiana Wholesale – closed wholesale consumer lending operations
First Magnus – no longer funding or originating any mortgage loans
First NLC - 645 layoffs
First Source Funding Group – closed
First Street Financial – closed
Flexpoint Funding – reportedly closed wholesale division
Flick Mortgage – closed
FMF Capital LLC – closed
Fremont General – exited secondary sub-prime market
FundingAmerica – not accepting any new business
General Electric – buying PHH Corporation
Great Southwest Mortgage – believed to be closed by parent First Magnus Financial
GreenPoint Mortgage – 440 employees laid off, 13 branches closed
H&R Block Mortgage Corp. – layoffs
Heartwell Mortgage – closed
Heritage Plaza Mortgage – closed
HMIC – closed
Home 123 Mortgage – closed
HomeBanc Mortgage Corp. – closed
Home Field Financial – closed
Home Loan Center Inc. / Lending Tree – layoffs
Homeview Lending Inc. – layoffs, now appears to be closed
HSBC Mortgage Services (Correspondent division) – closed
Impac Mortgage Holdings – layoffs, halted Alt-A loan production
Indymac – bought retail arm of New York Mortgage Trust, layoffs
Innovative Mortgage Capital – closed
Investaid Corp. – suspended operations indefinitely
KBC Bank NV (Belgium) – buying Vertical Lend
KKR Financial Holdings –no longer intends to invest in residential real estate
Lancaster Mortgage Bank – closed
Lender’s Direct Capital Corporation – closed wholesale lending operations
LendingTree – 20% of workforce laid off (fresh ones on Aug. 17)
Loancity – closed 7 branches, shut down
Loans 123 – no longer taking anymore business
Lone Star – facing lawsuit over purchase of Accredited Home Lenders
Luminent Mortgage – two default notices
Mandalay Mortgage – closed
Maribella Mortgage – closed
Master Financial – ceased wholesale production
Mercantile Mortgage – seized operations
Metrocities Mortgage – layoffs
MGIC – bought rival mortgage insurance provider Radian Group (pending)
Millenium Bankshares – closed mortgage division
Millenium Funding Group – closed
MLSG – halted lending operation
Mortgage Investment Lending Associates – closed
Mortgage Lenders Network – stopped residential loan production
Mylor Financial – closed
National Home Equity – consolidated by National City Corp., suspended originations, layoffs
Nationpoint – a subsidiary of Merill Lynch laid off 60 people on August 15, 2007
Nationstar – acquired Champion Mortgage
Netbank Funding – closed
New Century – filed bankruptcy
No Red Tape Mortgage – parent company Metrocities closed wholesale division
Northern Rock (UK) – issued profit warning
Novastar – closed wholesale unit, facing potentially huge lawsuit, laying off 37% of workforce
Oak Street Mortgage – closed
Opteum – closed conduit and wholesale operations
Option One Mortgage Corp. – layoffs, pending sale to Cerberus Capital Management LP
Own It Mortgage – closed
Pacific American Mortgage (PAMCO) – no new submissions, halted operations
People’s Choice Financial Corp. – bankrupt
People’s Mortgage – closed
Popular Financial Holdings - exited the wholesale sub-prime mortgage market
Premier Mortgage Funding, Inc – filed for bankruptcy
Quick Loan Funding – layoffs, now reported closed
QuoteMeARate.com Inc. - closed
RAMS Home Loans (Australia) – warned of profit losses after only two weeks on stock market
Residential Capital LLC – cutting roughly 1,000 jobs (GMAC company)
ResMae – bankrupt/for sale
Right Away Mortgage – closed
RFC – layoffs
Rose Mortgage Corp. – closed
Saxon – layoffs
Scottish RE – large subprime exposure drops stock into dangerzone
Sea Breeze Mortgage Services, Inc. – Irvine, CA office phone disconnected, rumors of closure
Sebring Capital Partners – closed
Secured Funding – closed
Silver State Mortgage – closed
Solutions Funding – closed
Sovereign Bancorp – exited wholesale market
Spectrum Financial Group – stopped funding loans, halted operations
Starpointe Mortgage – closed
Steward Financial – closed
Stone Creek Funding – closed
SouthStar Funding – closed
Summit Mortgage – closed
The Mortgage Warehouse – closed
Thornburg Mortgage – 5 downgrades, need to sell some assets to stay afloat, denied BK
Trojan Lending – ceased wholesale production
Trump Mortgage – closing
Unlimited Loan Resources – closed
Velocity Commercial Capital, LLC – layoffs reported, still breaking
Wachovia – closed Equibanc, layoffs
Warehouse USA – closed
Washington Mutual – exited correspondent market
Wells Fargo Alternative Lending Wholesale – closed
Winstar Mortgage – ceased operations
WMC – GE’s subprime unit cut 460 jobs
The mortgage side sure is having a big correction. A ton of jobs lost there, and that doesn't even cover the 1000's of broker shops going belly up as well.
The survivors will definitely make up their losses quickly though once the market gets back to good again...
May I ask where you got this list from and is it updated daily?
10-1 the title company they got it from snagged it from one of the two links I posted. Bloomberg has details on what they are doing or if they are in trouble. The implodometer is doing some presuming about the future on their site.
So, this may seem like a dumb question, from someone who is not "in the business" - but what happens to the mortgages that people have with these companies?
So, this may seem like a dumb question, from someone who is not "in the business" - but what happens to the mortgages that people have with these companies?
Mortgages are handled in two ways. They are either serviced by the original lender, typically called a portfolio loan, or they are sold on the 2ndary market. Investors can buy these mortgages, and either service them themselves, or have someone like Countrywide service it for them, for a fee.
Let's say the worst case happens, and the servicing company who holds your mortgage goes bankrupt. They would be liquidated, and the loan would be sold to someone else. They could buy it for 70% of it's worth, but it will have zero effect on you, other than you sending the check to someone new. The terms will stay the same, nothing will change at all.
One thing to note though, is per the Real Estate Settlement and Protection Act, you are protected for 60 days from the time you receive notice that your loan will be sold. They can not assess any late fees, or report you late to the credit agencies. They may try, but it is illegal, and you can get it remedied fairly easy. If you get this notification, you won't want to send your payment to your old lender. Do your best to contact your new lender to arrange payment if possible.
I am a Loan Officer and yesterday after 5:00 pm I was informed that SCME
Bank one of the lenders that our company does business with closed its
doors that day at the end of their business day.
This is very upsetting to me as my client's were sitting in our office lobby
scheduled to sign their final loan documents and now they do not have a
loan. My question is what happened to SCME Banks accountability to client's
and also providing customer service. It is very rude and unprofessional of
them to not even be responsable enough to give us more notice. Last night I
was heart broken to have to relay this tragic news to my clients insuring
them that I will do everything possible to get them another loan. This has
been a experience both my clients and I will never ever forget. There
should be some kind of legal requirments that lenders should have to follow
regarding closing procedures and the responsability to provide some sort of
advance notice. Please respond back and add SCME Bank to the list.
It appears some are only high risk loans - like Wachovia's Equibank
Looking at some of the sites, it doesn't appear they are closed, just that they stopped doing the big loans.
A list like this can freak people out and should contain better information.
Quote:
Originally Posted by LucilleWray
I am a Loan Officer and yesterday after 5:00 pm I was informed that SCME Bank one of the lenders that our company does business with closed its doors that day at the end of their business day.
Please respond back and add SCME Bank to the list.
Just looked at their web site, they are also not showing they are closed. Were the mortgages you were doing high risk?
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Closed/ Downsized Mortgage Companies
