A nonprime wholesale mortgage lender is shutting down.
The operations of Capital Alliance Funding Corp. will be discontinued, according to an announcement today from parent Capital Alliance Income Trust Ltd.
The mortgage unit, which touts Alt-A programs and subprime loans for mortgage brokers on its Web site, "will monetize its sellable mortgage loan inventory" and transfer unsold loans to the parent company -- a real estate investment trust, the statement said.
Capital Alliance Funding, founded in 1995 as a mortgage investment trust, became a non-qualified REIT in 1997, according to a recent SEC filing.
The lender noted in the filing that its maximum loan-to-value was only 75%.
The board of directors were unanimous in their decision to close the unit, Capital Alliance Income said.
The San Francisco-based company said it will continue to originate investment mortgage loans for its portfolio.