Master Financial Inc. has closed down its wholesale lending operation.
As of March 14, the company suspended its wholesale lending operation, according to a notice posted on its Web site today. Approved loans had to be closed by yesterday and must be funded no later than today.
"As you all know, our industry continues to experience rapid change and instability due to the lack of liquidity in the nonprime market," said a message addressed to the company's broker customers. "As a result of this continued pressure, we have to effectively cease our operations and reorganize our business to accommodate the new demands of the secondary market."
Master, which operates online at www.MFILoans.com, said it will continue to service mortgages and maintain a customer service line.
The Orange, Calif.-based lender had promoted itself as an originator of Alt-A, high loan-to-value and nonprime products.
Master, which notes it was founded in 1981, said loans in process will be declined as, "Don't grant credit on these terms and conditions."
"We apologize for the short notice and we will do what we can to help you and your customers through the transition," the statement to brokers read. "We believe in this business and look forward to serving you again in the future."