Another California-based wholesale operation has shut down.
Secured Funding Corp., a full-service retail and wholesale lender specializing in second mortgages, has shut down its broker operations and is now focusing entirely on its retail operations, according to a spokeswoman in its wholesale division.
The Costa Mesa-based company's exit from the wholesale business impacts the more than 3,000 brokers in 40 states with whom it has relationships, a number of which the company had boasted in media releases. It was establishing "an average of more than 250 new broker relationships each month," a corporate fact sheet stated.
Funds for loans whose documents were submitted by the end of last Friday, January 5, will be issued by this Friday, January 12, the spokeswoman said. "Other than that," she said, "all the loans are not being processed anymore."
Secured Funding's wholesale division accounts for approximately one-third of the lender's business. Secured Funding has only two retail offices, both located in California.
Only seven months ago, Secured Funding relocated its wholesale division to larger quarters in Santa Ana "in response to the record growth Secured Funding has realized over the last year," increasing its total office space by 35,000 square feet, a news release stated. "The lender more than doubled wholesale production and added 861 brokers to its network in the first quarter of 2006," the release pointed out.
Loan production continued to increase in the second quarter and during the first half of last year the company added approximately 200 new employees to its staff, bringing the total to more than 1,000.
Secured Funding, which was founded in 1993, reportedly funded more than 11,600 loans totaling nearly $900 million during the first half of last year. More recent figures were not available. This was almost double the amount funded during the first half of 2005, a year in which nearly 18,000 loans, totaling more than $1.25 billion, were closed. The company also funds first mortgages for home purchases and refinances.
Last month, Agoura Hills, Calif,-based Ownit Mortgage Solutions notified its brokers it was out of business -- leaving 600 employees and 11,500 brokers hanging.
Other wholesalers to recently close shop or consolidate include Mortgage Lenders Network USA Inc., Aegis Mortgage Corp. and Sovereign Bancorp.
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