|Following the collapse of its wholesale subsidiary earlier this month, a New Jersey-based net branch operation is throwing in the towel.
US Mortgage Corp. issued a statement indicating it has gone out of business.
"US Mortgage Corp. has ceased business operations due to unforeseen circumstances," a message on the company's Web site says. "Every effort has been made to assist consumers who may have been unable to close their loan application with the company before this event."
The Pine Brook, N.J.-based firm, founded in 1996, marketed a Branch Link programs that let brokers keep 100 percent of their commissions and yield spread premiums. The company charged a flat fee per loan.
In December, U.S. Mortgage boasted in a press release about how its business was picking up.
While the number of employees and branches was not immediately available, the company said it was licensed in 27 states.
US Mortgage processed 2,278 loan applications for $536 million during 2007, according to All Mortgage Detail.
Just last week, MortgageDaily.com reported the collapse of US Mortgage-subsidiary CU National Mortgage. The unit provided mortgage services for credit unions. A notice sent to its customers indicated that US Mortgage's warehouse line-of-credit was cut, its access to Fannie Mae as a delivery channel was lost and it was no longer able to use Fannie's Desktop Underwriter.
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