A Georgia-based lender has stepped out of the wholesale market and will focus on retail operations.
BayRock Mortgage Corp. discontinued all of its wholesale operations effective immediately, according to a copy of an e-mail message today from Bayrock President and Chief Executive Officer William M. Medley Jr.
"A challenging market environment, coupled with continued liquidity limitations, gives us no other choice but to look for the long-term survival of BayRock," the CEO said.
All previously submitted loan applications that had been cleared to close will continue to be processed, while all other files will be returned at the broker's request, the message read.
"We've enjoyed working with all of BayRock's broker partners and we regret that this decision has to be made and the impact on all those who will be affected," the CEO continued.
Calls to Bayrock were not returned prior to MortgageDaily.com's deadline.
In addition to Alpharetta, Ga., Bayrock had operations in Owensboro, Ky.
In a July 2005 interview, Bayrock told MortgageDaily.com the Kentucky center would house 100 new nonconforming wholesale employees. These additions, to its staff of 154 at the time, were expected to be complete in two years and increase annual mortgage volume to $1.5 billion in 2006.
As of this afternoon, spokesmen for the Georgia Department of Labor and the Kentucky's Division of Workforce and Employment Services said they had not received from BayRock any filings related to the Workers Adjustment and Retraining Notification Act, which requires covered employers to give notice 60 days in advance of a plant closing, layoff or transfer of 50 jobs or more.
Medley's message stated Bayrock will continue to develop and grow its retail platform.
Founded in 1994, BayRock Consumer Direct specializes in online lending and closes loans in under 14 days in most cases, according to its Web site as of today. The company handles credit scores ranging from 500 to 850 and has "a full array of products to offer to customers with less-than-perfect credit."
"BayRock has steadily grown to become a national leader in residential lending," the site states. "Our product offerings are robust, innovative and highly competitive, allowing BayRock to become an extremely efficient lender."