A North Carolina lender has closed its subprime wholesale lending arm.
Homeland Capital Group LLC stopped taking applications on Wednesday, Melissa Greer, an employee of parent First Greensboro Home Equity, told MortgageDaily.com Monday. All loans in process will be funded.
We "shut down the division due to the market," she said, but First Greensboro's retail operations continue in place.
Due to the closing of Greensboro-based Homeland, 15 account representatives lost jobs and only 2 wholesale employees were retained to form part of the parent's overall staff of 92, Greer said.
Homeland offered first and second-lien loans up to $1 million with maximum debt ratios of 50 percent, according to its Web site. Fixed-rate loans with amortizations up to 480 months were reportedly available, as well as 2/28 and 3/27 adjustable-rate mortgages with balloons.
The site listed 34 states in which Homeland was licensed to do business, which included California, Oregon, Colorado, Texas, Minnesota, Michigan, Delaware and Florida. Most of the states it did not cover were in the Northwest and Northeast.
Greer did not have numbers for annual volume and mix of loans for the companies.