A Florida-based subprime wholesaler has quit funding loans.
On Monday, a greeting message at the headquarters number for The Mortgage Warehouse stated, "Unfortunately, we are not accepting any new loan submissions."
Upon MortgageDaily.com's requests to management staff for comment, a reply e-mail by outside sales manager, Cindy Arceneaux, read, "No comment."
The Mortgage Warehouse was "fully committed to providing the best possible service to meet the needs of our brokers and their nonconforming borrowers," a mission statement on the company's site read. "Our goal is to form partnerships with selected brokers who are looking for a lender that will be here for the long term, and to meet those brokers' needs for products and service that will ensure a long term business relationship."
The Clearwater-based company started operations in 1997, had a network of over 2,000 brokers and was licensed to lend in 26 states, from North Carolina to California and certain areas in the North and Midwest, according to its site.
The wholesaler reportedly used a "state-of-the-art" automated decisioning system to allow brokers to export loan and complete credit data directly from their loan originations system and receive instant pre-qualification.
The Mortgage Warehouse claimed it provided a "full range of products from subprime and High LTV to Alt-A and Jumbo," including pay-option adjustable-rate mortgages.
Subprime loans, including first lien 2/28 ARMs and 3/27 ARMs and 20-year second lien loans, were available for borrowers with credit scores as low as 530, the site said. The Alt-A menu included fixed first lien loans with no mortgage insurance on less than 95% LTV for scores as low as 620, stated income loans on scores as low as 620, and no doc loans for a minimum score of 660.