A company that recently ranked among America's fastest-growing private companies is calling it quits.
FMF Capital LLC will wind down operations, its Toronto-based parent FMF Capital Group Ltd. announced late today.
The Southfield, Mich.-based company reportedly originated loans through a network of more than 4,400 mortgage brokers in 39 states.
"This decision by the company was made as a result of the continuing rapid and severe deterioration of the U.S. nonprime mortgage industry and other factors affecting its overall nonprime mortgage business," the statement said. "The company retained a financial advisor to explore all potential strategic alternatives, including a potential sale of the business, which efforts did not result in any viable alternative."
In November, FMF settled three class action lawsuits filed in Michigan, Ontario and Quebec, Canada, that alleged "violations of the Michigan Uniform Securities Act, fraud and negligent misconduct," FMF announced at the time.
In May, the company announced it closed a wholesale mortgage lending operations center in Scottsdale, Ariz., as part of a reorganization that resulted in 31 layoffs. Several investor interest payments had been deferred last year.
FMF, which previously operated under the names Franklin Mortgage Funding and Franklin Direct, reported in April it had obtained waivers from warehouse lenders over being out of compliance with warehouse covenants.
The intensity of the company's disintegration matches the intensity of its rise.
FMF was ranked among the top 400 fastest-growing private companies in the 24th annual Inc. 500 ranking, reflecting growth from 2001 to 2004.
"FMF Capital has experienced tremendous growth," with more than $2 billion in production in 2004 of which $724 million was in the fourth quarter, commented FMF CEO Robert Pilcowitz in a 2005 announcement.