PRESS RELEASE
Mortgage Graveyard Update from MortgageDaily.com
DALLAS — (August 20, 2007) August is turning into one of the worst months ever for mortgage lending, according to https://www.mortgagedaily.com — the dominant source of online news for the mortgage industry.
Through Aug. 17, The Mortgage Graveyard has chronicled the collapse or shut down of 84 mortgage companies or operating units. For all of 2006, just 17 closures were recorded.
A note sent to Chevy Chase’s mortgage banking customers Thursday and reviewed by MortgageDaily.com said the Maryland-based company’s correspondent lending division is “no longer accepting locks and registrations until further notice.”
Express Capital Lending, a California-based Alt-A wholesaler, has gone into hibernation, a company executive told MortgageDaily.com.
“It’s just a matter of time until we get some things we can sell,” the Express executive said.
First Magnus Financial Corp. has shut down all of its operations.
The Arizona-based wholesaler’s retail division, Great Southwest Mortgage, also apparently has shut down.
One former insider told MortgageDaily.com that about 70 percent of First Magnus’ business was wholesale.
Choice Capital Funding did not renew its state mortgage license, allowing it to lapse last month, according to Georgia state records.
Bay Finance Co. has stopped originating mortgages, according to an announcement Wednesday.
Nevada-based MLSG Home Loans recently had “halted its lending operations due to the current market instabilities,” according to a Web site statement.
A subsequent message clarified MLSG only intended to temporarily suspend operations.
MLSG suspended originations and fundings until they “figure out what is going on in this crazy world,” MLSG’s president told MortgageDaily.com.
One Florida firm denied rumors it shut down.
What stemmed from the layoff of 18 account executives at TransLand Financial Services escalated into a fiasco when an anonymous “tipster” reportedly told a popular blog site that TransLand was closing its wholesale operations, according to a TransLand executive.
“I had to spend the whole afternoon calling our investors,” he told MortgageDaily.com.
Visit the Mortgage Graveyard at:
http://www.MortgageGraveyard.com
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Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.
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Source:Â MortgageDaily.com
