home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Net Branch Failed Without FHA

Liberty One shutting down

January 7, 2009


A 100-branch company is closing down, leaving many managers scrambling to find new homes. One manager speculated that the firm's demise was its inability to quickly establish government lending in each state.

Liberty One Lending has shut down.

"Effective immediately, Liberty One is ceasing all operations," Matthew D. Goddard, chief executive officer and owner of Liberty One, said in an e-mail to employees Monday.

At least one branch manager, in response to a phone call, reportedly received a text message from Goddard stating that "I don't have the money to pay you what you're owed."

While the CEO indicated loans in process could be closed until Jan. 31, no loan officers were likely to close any more loans with the company since they had yet to be paid for December closings, according to interviews with three branch managers.

A former manager of one of Liberty One's nine Arizona branches with 17 originators told MortgageDaily.com that he had spoken with several branch managers who, along with their loan officers, were owed as much as $38,000 for December.

He said he was resubmitting more than 50 loan applications to a new company with whom he has become affiliated. "That puts us about a week behind," he said. "It's a lot of extra work."

Two weeks before the shut down, he said that Goddard had told him "that everything was good, don't worry," and the company was planning on signing a contract with an Internet marketing company.

"There was an extreme lack of communication," he said. "Now everything is over."

Goddard couldn't be reached for a comment. Liberty One's main phone number, as well as the phone numbers for many of its branches, were no longer functioning. The main Web site has been shut down.

The Goodyear, Ariz.-based company employed nearly 1,000 loan officers in around 100 offices. The branch network was licensed in all 50 states. In addition to its lending operations, the company also operated a real estate brokerage, Liberty One Real Estate. Two managers said it was their impression that Liberty One Real Estate would continue to operate, but under a new name.

"We're scrambling to find a new company," Albert Black, manager of an Arizona branch, told MortgageDaily.com in an interview.

"Things don't look good," said another manager, who also said he was trying to establish an affiliation with another company.

But a third manager, embittered by the experience, said, "I'm not going to go with another broker. Banks are where it is right now."

Problems began emerging in early 2008.

"A year ago, things started to deflate," said one of the managers, who asked not to be identified. "Then things started to fall apart in spring."

Some offices were closed and some loan officers began operating from their homes, the manager said.

He explained that one problem was that they did not receive FHA approval in some states until early 2008. Although licensed in all 50 states, a Liberty One Web page indicated it was FHA-approved in only 28 states.

"It cost us not to be approved when we needed to be," the manager stated.

One unpaid originator said she had "money invested in this loan," including credit reports costs, without even these out of-pocket expenses being reimbursed.

"It's over," Goddard reportedly said in the text message. "Everything is done.

"I worked my whole life for nothing."

Jerry DeMuth is an award winning journalist who has been reporting for four decades.

e-mail Jerry at [email protected]
Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Mortgage Branch News | Net Branch | Mortgage Branch Directory
Coverage of new and existing net branch operations. Programs, payouts and other details. Profiles of brokers and net branch lawsuits.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders