Another subprime wholesaler is calling it quits -- leaving employees in seven states without a job.

Acoustic Home Loans LLC is no longer in business, according to a statement on its Web site.

"Acoustic will not accept new loan submissions after 4/13/2006," the statement said. "However, we will continue to process loans that are in approved status or better until 4/30/2006."

The nonprime wholesaler says it went from a startup in 2002 to the "27th largest nonprime wholesale originator in the nation."

Interest rates on 2/28 hybrid first mortgages ranged from 6.19% to 11.99%, while second mortgages were priced as high as 12.75%, according to a copy of the company's pricing matrix. Stated income, 100% loan-to-value and FICO scores down to 500 were among the programs offered.

Reportedly founded by Frank Curry and Rich Ladd, Orange, Calif.-based Acoustic says it is licensed to operate in all but five states and also has employees in Arizona, Colorado, Florida, Georgia, Illinois and Nevada.

"Applications received after 4/13/2006 and loans that are not in approved status or better will be returned to the broker," the Web site said.

A company spokesman was not immediately available for a comment.


SIMILAR STORIES:

Calif. Company Calls it Quits
A nonprime wholesale mortgage lender is shutting down.

Subprime Execs Forego Compensation
In an apparent effort to stay afloat, senior executives of a nonprime mortgage lender are looking at significantly reducing their compensation.

Net Branch Closes Doors
A Texas-based nationwide mortgage brokerage with as many as 300 branches abruptly shut down Friday, according to two of the company's branch managers.