Ownit Mortgage Solutions has notified its brokers that it is out of business -- leaving 600 employees and 11,500 brokers hanging.
The Agoura Hills, Calif.-based company sent an e-mail to its mortgage brokers yesterday saying it "will cease operations on December 6, 2006."
Ownit, which touted nonprime programs on its Web site, attributed the failure to current market conditions, noting, "Change takes time, and we are saddened that the current unfavorable conditions of the mortgage industry did not afford us sufficient time to see our mission through."
Nobody from the company was immediately available for a comment.
But the voicemail message of a California employee listed as a contact in the e-mail said brokers can request their loans be delivered to another lender.
Ownit had been on the fast track to growth.
Earlier this year in an interview with MortgageDaily.com, Ownit executive Bruce Dickinson said the company had 11,500 approved mortgage brokers, was licensed in 41 states and employed 600 people.
"We think there will be some key acquisitions available for us in the market, so as opportunities present themselves ... we will continue to expand," he added.
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