home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Former Branch Operation Bankrupt

Oak Street files chapter 11

June 11, 2007

By PATRICK CROWLEY


photo of Patrick Crowley
A mortgage company based in Central Indiana -- which at its peak employed more than 700 employees, operated a branch network and generated more than $50 million in annual revenues -- has filed for bankruptcy protection.

Oak Street Mortgage LLC was once growing so rapidly that it contemplated a public offering of stock that could have raised millions of dollars.

But the company, which sold off retail lending offices and other assets last fall, has filed for Chapter 11 bankruptcy.

Oak Street, headquartered in Carmel, has between one and 49 creditors as well as assets and liabilities of between $1 million to $100 million, according to its federal bankruptcy court filing.

The ranges are broad because companies filing for Chapter 11, at least in the early stages of seeking protection under the federal bankruptcy laws, are not required to divulge more specific information.

Oak Street, founded by former Bank One executive Steve Alonso, could not be reached for comment.

An online analysis by Manta.com, which tracks business activity, indicated Oak Street was founded in 1999 and, at its peak, had 750 employees and estimated annual sales revenue of $58.4 million.

Hoovers, which tracks company's business activity and finances, said in an online report that Oak Street had planned to sell stock and establish itself as a publicly traded Real Estate Investment Trust, or REIT.

But the company "withdrew its initial public offering registration in 2005, citing unfavorable market conditions," Hoovers said.

Last summer, three former Oak Street originators filed a federal lawsuit claiming the company improperly withheld overtime pay from their wages. Subsequently, more than 125 other originators from around the country joined the litigation.

"It's going to be an enormous case," the plaintiffs' attorney Donald H. Nichols told MortgageDaily.com at the time.

He noted his firm had already handled about 22 loan officer cases over the last several years and won each one of them -- resulting in $60 million in wages being collected for the workers.

The following September, Oak Street exited residential originations, selling 21 retail branches and other assets to NovaStar Financial Inc. It intended to continue its commercial lending under the Oak Street Funding brand.

At the time, NovaStar said the sale was expected to boost production by as much as $100 million. NovaStar retained about 500 of Oak Street's employees.


Patrick Crowley is a feature journalist and blogger for MortgageDaily.com. He is also a reporter, blogger and columnist for The Cincinnati Enquirer.
e-mail Patrick at: [email protected]

Mortgage Branch News | Net Branch | Mortgage Branch Directory
Coverage of new and existing net branch operations. Programs, payouts and other details. Profiles of brokers and net branch lawsuits.


Commercial Mortgage News | CRE Lender Directory | CRE Statistics
Stories about commercial lending on multifamily, office, retail and industrial properties.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders