Net Branch files Bankruptcy
Frivolous lawsuits have driven a company that claims to be the largest U.S. branch operation into bankruptcy.
On Wednesday, Premier Mortgage Funding Inc. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court of the Middle District of Florida.
The Clearwater-based broker's filing states that debts are "primarily business debts" and that, after any exempt property is excluded and administrative expenses paid, the company estimates it will not have funds available to distribute to unsecured creditors.
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Another Wholesaler Falls
A California-based nonprime lender has closed its wholesale operations and laid off 150 people.
Lenders Direct Capital Corp. stopped taking applications from brokers as of today, Michael McQuiggan, chief executive officer, told MortgageDaily.com.
Repurchases Stinging Subprime Sector
Mortgage loan buybacks are exacting a devastating toll on subprime lenders -- even forcing some companies out of business.
"It's the hot topic of the day," Joseph Lydon, president and COO of Accredited Home Lenders, said during a recent conference call with investors. "There is some renewed focus by the buyers of those loans, the investors, definitely scrutinizing those loans more than in the past."
Mismanagement Kills Mortgage Firm
Arizona regulators are shutting down a mortgage company with over 80 branches because of extremely lax hiring practices, poor record keeping and incompetent management.
Eagle First Mortgage consented to the Arizona Department of Financial Institutions' order to surrender its mortgage broker license and that of all of its branches, which -- according to the state -- number around 82.
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.
Alt-A Wholesaler Exits
An Alt-A wholesaler has left the mortgage market.
Flick Mortgage Investors Inc. ceased taking business from brokers on Friday, according to a notice on its Web site, effective at 3 p.m. that day.
Bank of America Closing Wholesale
A message from a Bank of America account executive reviewed by MortgageDaily.com indicated the banking giant is exiting wholesale mortgage lending.
"We are ceasing wholesale operations as of Dec. 31st," the message said.
Net Branch Collapses
The abrupt closing of a Michigan company, which had mortgage branches from Alaska to Florida, has one former manager wondering what happened to branch reserves he deposited three years ago.
Starpointe Mortgage CEO and founder Michael Cosentino informed employees through a companywide e-mail on June 25 that they had until July 3 to close any loans in their pipeline and that the company was closing, according to branch agency director Craig Pierce.
Chase Dumps Subprime Loans
JP Morgan Chase & Co. has sold off much of its subprime mortgage holdings as the industry continues to struggle through a brutal downturn. But given the right deal, the financial giant would again take a big position.
Chase CEO Jamie Dimon told investors and analysts this week that after the present shakeout begins to ebb the money-center bank will begin looking for subprime deals.
Another One Bites the Dust
Another subprime wholesaler is calling it quits -- leaving employees in seven states without a job.
Acoustic Home Loans LLC is no longer in business, according to a statement on its Web site.
The Mortgage Graveyard
A new journal chronicles mortgage lenders that have failed, been acquired or are currently struggling.
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