Alliance Bancorp has filed bankruptcy and closed its doors.
The Alt-A lender shut down Friday, according to a notice by President and Chief Executive Lisa Duehring posted on the company's Web site.
"We have exhausted our resources and do not have the means to move forward," she said in the message. "Therefore, it is with great sadness that I announce that we have ceased operations as of today, July 13th."
Duehring, who last month added to her role of president when she succeeded retiring CEO Mehrdad Elie, did not return a call for comment by MortgageDaily.com's deadline.
Friday also held the lender's filing for Chapter 7 bankruptcy protection in Delaware.
The Brisbane, Calif.-headquartered company estimates it has over 10,000 and up to 25,000 creditors, and assets and liabilities of more than $100 million each, according to the filing with the U.S. Bankruptcy Court District of Delaware. Alliance Mortgage Investments Inc. and Alliance Bancorp Inc. are named as affiliates that have pending bankruptcy cases. Alliance Mortgage, a Delaware corporation, owns Alliance Bancorp.
Alliance chose Chapter 7 after concluding that "the company does not have a reasonable possibility of success" in effectuating an orderly liquidation to restructure under Chapter 11 because it would have "insufficient cash and/or financing with which to operate" during the sale of its remaining assets and would be unable to meet its post-petition liabilities, the filing indicated.
A meeting with creditors is scheduled for August 15 in Wilmington, Dela., according to court documents.
Alliance described itself as "a strong, stable provider of unique products to meet borrowers' special needs, featuring flexible guidelines for maximum adaptability," and as a pioneer in Alt-A and no documentation loans first and second portfolio mortgage loans, according to its Web site.
The conduit and wholesale lender's listed loan programs included stated income stated asset loans and no income no asset loans with amortizations up to 40 years. They promoted a 680 score program with debt to income ratio up to 55 percent and a 620 score with a debt ratio of 50 percent. Interest-only options were available in some of these loan programs.
The site also listed stated income verified asset loans, prime piggybacks, and jumbo programs of up to $2 million available on a 680 score, 70 percent LTV, or 75 CLTV and a DTI of 50 or on a 620 score with 60 percent LTV, or 70 percent LTV with a DTI of 45.
"This year we've put up a valiant fight," Duehring's notice read. "One with integrity, dignity and never wavering determination, focused solely on how to succeed."
"Unfortunately the latest market was more than we were able to overcome."