MortgageDaily.com has confirmed the demise of yet another Alt-A lender. The California wholesaler said the level of its originations was in a downward spiral.
Mylor Financial ceased all operations on Aug. 6, according to a message at the Mission Hills headquarters office.
"The volume was disappearing," Mylor Vice President Ron Roelke told MortgageDaily.com Wednesday. "We were no longer operating as a viable wholesale lender in California."
The primarily Alt-A company saw its volume of closed loans, predominantly from California, decline to $45 million in July from $55 million and $75 million in June and May, respectively, the executive said.
"That, together with the turmoil in the Alt-A market, certainly indicated [volume] would continue decreasing and we decided to close," Roelke added.
The closure affected about 80 employees in the Golden State, the executive said. In addition to the corporate office, Mylor had wholesale branches in San Diego, Aliso Viejo, San Luis Obispo, Burlingame and West Covina, according to its Web site.
Mylor's site states that the company was approved to do business in 10 states.
Roelke noted that the only other states, besides California, Mylor was getting loans from were Washington and Nevada. But the company exited those states about a month ago or so, when it closed operations in Las Vegas, resulting in about 10 layoffs, and then terminated two account executives in Seattle.
"The volume outside California was negligible," he explained.
In addition to conforming products, Mylor's offerings included LIBOR-indexed Alt-A loans, 30-year 3/1 adjustable-rate mortgages with interest only terms, closed-end seconds, and pay option 40-year loans with no intro Monthly Treasury Average 3-year prepay, according to a product code sheet.
Other Alt-A lenders that have recently abandoned Alt-A originations or collapsed include American Home Mortgage Investment Corp., Impac Mortgage Holdings Inc. and WinStar Mortgage Partners Inc.