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|Fast Growing Firm Suddenly Closes
IFG was on Inc. 5000 list
Sept. 18, 2013
By Mortgage Daily staff
|A mortgage firm that last year ranked among the fastest growing companies in the country suddenly laid off its employees and is closing down.
Revenue at IFG Mortgage Corp. totaled $17.5 million in 2012, up 128 percent from three years earlier and landing it at No. 2,722 on the Inc. 5000.
Between its founding in 1995 and October 2012, IFG reported residential that loan originations were more than $3 billion.
Data from the Nationwide Mortgage Licensing System indicate that the Newtown, Pa.-based company was licensed in 16 states and Washington, D.C.
But on Wednesday, Atlanta-based Equity Loans LLC announced that "top management and key employees" were leaving IFG and becoming employees of Equity Loans.
Although no senior IFG executives responded to a request for information about IFG's status, an employee from the corporate office -- who asked not to be identified -- confirmed that IFG is in the process of closing down. The employee said he has been offered a job with Equity Loans but hasn't yet decided whether to accept the offer.
"The end is near; the closing is imminent," he stated in a telephone interview.
He noted that employees and senior management were "blindsided" by the development.
"Two weeks ago we find out that the owner is sick," he said, "and then two weeks go by with not really much information. Come in to find out massive layoffs -- that was on Friday.
"There were issues of payroll."
He went on to explain that a skeleton staff remained as of Monday to try and close out the pipeline, and Friday is the last day of business.
He said the owners of the company are Ari Sadoff & David Rzepksi.
A prior announcement indicated that IFG was founded in 1999, while NMLS records indicate a formation date of Dec. 1, 1995.
"It's been very upsetting as an employee," he said. "We were all kind of kept in the dark, and it all happened so quickly -- didn't think that a company like IFG would come crumbling down so fast."
He noted that close to 150 people were employed by IFG. NMLS records indicated that 59 sponsored mortgage loan originators were on board. The company was reportedly still recruiting new employees as of last month.
Residential originations were running at about $30 million a month prior to the last few months, according to the source.
He speculated that "too much expansion" was behind IFG's demise. The company had apparently been spending significant expense on two new California offices.
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