PRESS RELEASE
Latest Mortgage Casualties from MortgageDaily.com
DALLAS — (June 11, 2007) Nonprime programs helped sink three more mortgage companies, according to the latest coverage from https://www.mortgagedaily.com, the dominant source of online news for the mortgage industry.
Lancaster Mortgage Bankers LLC, a New Jersey lender that offered expanded criteria programs and specialized in Alt-A and No-Documentation loan programs, recently abandoned its mortgage broker business.
“Due to dramatic and recent changes in the mortgage banking business we have decided that it is time to close down our operations,” read a message on its Web site recently. “As of this date, Lancaster Mortgage Bankers LLC will no longer be funding loans.”
Lancaster said it operated in 16 states. (https://www.mortgagedaily.com/ClosureLancaster060507.asp)
No Red Tape Mortgage will be winding down operations, a spokesperson for one of the joint venture’s partners told MortgageDaily.com.
No Red Tape, which reported $3 billion in 2005 originations, had been a jumbo specialist but expanded into the Alt-A and Alt-B business, according to the spokesperson. The high rate of delinquencies in those markets triggered the decision to abandon the business. (https://www.mortgagedaily.com/ClosureNoRedTape060507.asp)
The Lending Group Inc. suspended all operations, according to a recent notice posted on its Web site.
The Jacksonville-based company reported 300 percent growth in 2005 — landing it on the Business Journal’s No. 5 spot of the Fastest Growing Private Companies in North Florida. Last year, the lender reported 74 employees with $500 million in originations from 36 states — moving it up to the No. 4 ranking.
Helping to thrust it forward were programs with credit scores down to 500, unseasoned refinances and closing funds, and 100 percent loan-to-value loans with 620 credit scores, according to a one program guideline document. Debt ratios went as high as 55 percent while loans maxed out at $1.5 million. (https://www.mortgagedaily.com/ClosureLendingGroup052907.asp)
Read about all this year’s mortgage casualties at http://www.MortgageGraveyard.com
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