List of lenders no longer doing business

[Erik]

I figure it might be helpful to keep track of all the lenders who have temporarily or permanently stopped funding loans, stopped originating loans, or otherwise stopped doing business. List all the ones you know of here.

• Loancity
• People's Choice
• Investaid
• FMF Capital
• New Century
• Fremont

[kmac1116]

* Investaid - is closing its doors, March 16th

* E-loan announced it will close their sub prime wholesale division

* Mandalay Mortgage - No longer in business

* Mortgage Lenders Network - No longer in business

* Ownit - No longer in business

* Axis Mortgage closed its doors

* Seabring - No longer in business

* Meritage - No longer in business

* Acoustic - No longer in business

* ResMAE listed for sale

* Oak Street Mortgage closed its doors

* Right Away Mortgage closed its doors

* Secured Funding closed its doors

* Loans 123 - Not taking any more business

* HMIC closed its doors on Dec 20. As part of a $100 million cost reduction strategy, Sovereign
Bancorp its owner exited the wholesale mortgage market.
* Ampro – gone, acquired by United Financial Corp.

Argent – Effective January 22nd
* All Regions- Removed Full Doc *<640 Fico Combos and 100% tiers.
* All Regions- Removed Stated Doc <680 Fico Combos and 100% tiers.

Argent - Consolidated and let 1,000 people go.

Ameriquest - Currently for Sale laid off 3,800 and shut 229 retail branches after announcing a $325 million settlement with state's attorneys general for overcharging borrowers. THEY MAY NOT LAST TILL SPRING.

WMC – Effective Feb 1st
* Increased rates for <=95% LTV/CLTV by +.15
* Add increases for condo, 3-4 units & 2nd home
* Raised 80/20 Full Doc min FICO to >=620
* 80/20 Stated FTHB: discontinued 100% CLTV pricing
* Raised Stated Non-FTHB min FICO to >=700

Option One – Intel Feb 2nd
* Increased min credit score requirements on Full Doc to 640
* The report the worst loan performance

Option One (Owned by H&R Block, Owned By HSBC)- Is Up for Sale selling off it’s portfolio

Decision One – Effective Feb 1st
* Increased min credit score requirements on Full Doc to 620
* Increased min credit score requirements on Stated to 660
* Decision One closed 6 regional centers.

Homecomings Financial – Effective Feb 1st
* Min credit score increased from 580 to 600 for Full, Lite and Fast Doc
* Min credit score increased from 640 to 660 for Sated Income
* 55% DTI now requires 640+ credit score (IO and 40 yr limited to 50% DTI)
* Max seller contributions are being reduced from 6% to 3%
* Minimum loan amounts requirements increased to $100,000
* Salary.com income verification is now required on stated borrowers

IndyMac - Effective January 26th
* Minimum 640 Fico for Full Doc loans (change from 620)
* Minimum 660 Fico for Stated loans (change for 640)
* Require 2 months PITI reserves for all Full Doc loans 640-659 Fico

Countrywide – Effective Feb 1st
* 24 month credit history, 3 trade lines, 3000 high credit (collections count)
* max 200 payment shock for purchases
* stated loans @ or above 90 require 2 months piti sourced and seasoned
* 100 LTV, borrower has to be 0x30 or capped at 95 LTV with a 1x30
* 2yr BK seasoning on loans with 100 LTV
* I/O min credit needed, 580 stated wage earner, minimum 560 credit needed

Encore – Effective Feb 1st
* Increased their min credit score on Full Doc from 600 to 640
* Increased their min credit score on Stated from 660 to 680

Wachovia Corp.'s consolidation of its recently acquired wholesale lenders American Mortgage Network , and World Savings operations will result in layoffs

Fieldstone announced that it's closing 5 west coast branches including its Arizona operations. Fieldstone Mortgage also has closed their Las Vegas branch.

Aegis Funding (sub-prime) closed its doors (Aegis Wholesale (Conforming and Alt-A) and Home Equity are still open) for now.

Southstar - AE's leaving (a good source stating company cannot meet payroll obligations)

Accredited - OC Regional office production at its lowest levels, rumors they may close by 1st qtr.

Saxon – Layoffs possible closure.

RFC - Layoffs

Bank of America Mortgage laid off 225 locally.

Countrywide Mortgage - Multiple layoffs. In talks with Bank of America about possible merger (CNN). Countrywide has also filed suit against 15 parties alleging that the company may have been tricked into lending as much as $40 million dollars (figures elsewhere say $80 million.) The defendants include eight individuals an appraiser, a property management company, and several mortgage and lending companies. According to The Wall Street Journal, another large lender, Argent Mortgage Company may also have been caught up in the scam. Some of the bad loans also appear to have been acquired by Fannie Mae.

Washington Mutual - Continued layoffs. Wholesale reps offer 1 pt to realtors for referral of loans. (Cutting the throats of their Broker base! Not good for biz!)Not to mention a blatant respa violation!!
WAMU also exited their correspondent business

[Erik]

There we go - that's a great list! Not great to see all those changes, but good information to have for everyone.

[Greg]

Well, very good post there!

[Corona Del Rio]

What we need now is a reform of the credit reporting agencies. Not allowing collection companies to re-issue old debts that are over 7 years old, from the original creditor, who have written and charged them off years ago. Purchasing debt for pennies, allowing collection agents to make harassing calls, not to mention, the devistation of credit scores needed for qualifying for loans that just may pay off those debts. I personally had a collection agent threaten me last week to pay a debt owed and writen off in 1989, do the math, it crashed my scores for refinancing. Something has to give.

[Greg]

New Century is still in business. For now. Let one of their highly motivated commissioned loan officers send you to a Mortgage Broker.

[GLOAT]

Collection Agency trick:

I learned this from a guy who owns a collection agency;

If an account worth collecting on gets close to the time frame, he would take $5 from his pocket, make a pmt. for the debtor, send the original creditor there share , and now has 7 more years to collect on it.

He is now out of business though, but not from getting caught doing that. The average debtor knows little more than there is a 7 year "something"

[bcasiano]

Hey KMac, you are better than mortgageimplode.com.
LOL

[Erik]

I hope everybody gave kmac some green rep love for his great post. Hint hint, nudge nudge.

[Secret!]

Gosh Erik, do ya know how many of these lists are out there? I have seen no less than 4 of them, in fact saw this new one just this morning: The Mortgage Graveyard from MortgageDaily.com -- actually, who cares anyway? The list will change frequently, and just when YOU have a loan submitted for approval -- SURPRISE!

SOLUTION? Sure there is, STOP trying to get stupid loans approved through the few wholesalers who still offer them, stick instead to senisble loans instead, then you won't get surprised!