Mandalay Mortgage has notified its brokers that it won't take any more of their subprime business.
The mortgage banker "exited the nonprime wholesale mortgage business," according to a message on its Web site Thursday. No new loans will be funded after Jan. 31.
"Mandalay will no longer accept new loan applications effective immediately," the message read. "Loans that have loan documents either out for signing or already signed will continue to be processed and funded; all other loan applications will be returned."
The Woodland Hills, Calif.-based subsidiary of Mandalay Mortgage LLC, which said it was founded in 1999, operated an Irvine, Calif., production center in addition to its headquarters, according to its Web site.
"Located in Southern California, Mandalay is one of the fastest growing specialty finance companies in the nation, currently operating in all of the Western states," the Web site still said as of Thursday.