Some employees of a collapsed Texas wholesaler may find work at the parent company.
Houston-based Home Loan Corp. has shut down its subprime Expanded Mortgage Credit wholesale operation, putting an undisclosed number of employees out of work.
The move was confirmed by a former Expanded Mortgage broker and an executive at Home Loan Corp.
"No one is buying these loans any longer, so there is really no need to continue producing a product no one wants," Susan Todd, a Home Loan executive vice president, said in an e-mail to MortgageDaily.com. "The parent company, Home Loan Corporation is continuing business as usual, originating FHA/VA, conventional loans."
Todd confirmed that some employees have lost their jobs, but others have found work with Home Loan.
"We had gradually been decreasing in size," she said. "I am not sure of the exact numbers, but I am sure we will try to absorb as many people as possible on the Home loan side. I do not have the latest numbers."
Keith Tidwell, an Expanded mortgage broker working out of the Dallas area, said the company was shut down Sept. 12.
"We have ceased operations," Tidwell said in an e-mail. "Dallas and Austin are now operating as 'A' paper wholesale shops under our parent company Home Loan Corporation."
Tidwell referred questions about the reasons for closing, the loan production at Expanded Mortgage and the number of employees to Terry Likens, who he identified as an executive in Home Loan's home office in Houston. But Likens did not return phone call messages or e-mails to comment.
Home Loan handled nearly 26,000 loan applications and did $3.7 billion in business in 2005, according to AllMortgageDetail.com, a Web site that tracks mortgage activity.
Expanded's failure is the 99th mortgage banking casualty covered by MortgageDaily.com this year and highlights how the complete unwinding of the subprime mortgage industry is ongoing.