Real Estate Blog - (VERY INTERESTING) "Imploded" Mortgage Lenders & Ailing/Watch List Mortgage Lenders

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(VERY INTERESTING) "Imploded" Mortgage Lenders & Ailing/Watch List Mortgage Lenders

Dear Reader,

I was referred to a very interesting website which I thought was extremely interesting to me and I know for a fact that it would be interesting for you as well. You don't have to be a financial analyst or a mortgage industry analyst to know that we are going through some rough times. I was referred to this websute: http://www.ml-implode.com/ which is a website dedicated to the mortgage lending industry. This website has news about lenders that have gone out of business and lenders that are on a watch list of lenders in trouble or possibly going out of business. You can take a look at the website closely on your own and you figure out if this is really accurate or not. Below I will copy and paste the 117 mortgage lenders that have already gone out of business or are on their way of going out of business if still functioning. I will also share the 14 top mortgage lenders that are on a watch list of mortgage companies that are in trouble of some sort which is very bad for their company. Everything you find in this blog is not my opinion but data that I found on http://www.ml-implode.com/ or http://www.lenderimplode.com/ or http://www.mortgageimplode.com/

I will also share the definitions of imploded lenders and ailing lenders that is also found on the website:

"Imploded" lenders: The "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions.

Ailing lenders haven't shut down, but they're significantly scaling back or are (or recently have been) in manifest financial, legal, or operational distress. Unfortunately, most of the industry now falls under this description, so we are forced to reserve this list for the more glaring cases or those which we happen to have more specific info about.

The 14 mortgage lenders on a watch list are:

Ailing/Watch List Lenders according to website: http://www.ml-implode.com/

13. Quality Home Loans
12. Amstar Mortgage Corporation
11. Meridias Capital
10. Option One
9. CIT Home Lending
8. FNBA
7. GreenPoint Mortgage
6. All Fund Mortgage
5. Ocwen Loan Servicing
4. Doral Financial Corp.
3. Evergreen Investment/Carnation Bank
2. Coast Financial Holdings, Inc.
1. Residential Capital, LLC*

The 131 mortgage lenders that "imploded" according to website: http://www.ml-implode.com/

131. Accredited Home Lenders
130. First National Bank of Arizona (FNBA) Wholesale, Correspondent
129. GreenPoint Mortgage - Capital One Wholesale

128. NovaStar Wholesale
127. Quick Loan Funding
126. National City Home Equity
125. Calusa Investments
124. Mercantile Mortgage

First Magnus

First Indiana Wholesale

Pacific American Mortgage (PAMCO)

Spectrum Financial Group - Wholesale

Transland Financial Services - Wholesale

117. Express Capital Lending
116. Deutsche Bank Correspondent Lending Group (CLG)
115. MLSG
114. Trump Mortgage
113. HomeBanc Mortgage Corporation
112. Mylor Financial
111. Aegis (Everything)
110. Alternative Financing Corp (AFC) Wholesale
109. Winstar Mortgage
108. American Home Mortgage / American Brokers Conduit
107. Meridias Capital
106. Fieldstone Mortgage Company
105. Nations Home Lending
104. Wells Fargo Alternative Lending Wholesale
103. Entrust Mortgage
102. Flick Mortgage/Mortgage Simple
101. Alliance Bancorp
100. Choice Capital Funding
99. Premier Mortgage Funding
98. Stone Creek Funding
97. FlexPoint Funding (Wholesale)
96. Starpointe Mortgage
95. Unlimited Loan Resources (ULR)
94. Freestand Financial
93. Steward Financial
92. Wells Fargo (Correspondent)
91. Altivus Financial
90. ACT Mortgage
89. Alliance Mortgage Banking Corp (AMBC)
88. Concord Mortgage Wholesale
87. Heartwell Mortgage
86. Oak Street Mortgage
85. The Mortgage Warehouse
84. First Street Financial
83. Right-Away Mortgage
82. Heritage Plaza Mortgage
81. Horizon Bank Wholesale Lending Group
80. Lancaster Mortgage Bank (LMB)
79. Bryco (Wholesale)
78. No Red Tape Mortgage
77. The Lending Group (TLG)
76. Pro 30 Funding
75. NetBank Funding
74. Columbia Home Loans, LLC
73. Mortgage Tree Lending
72. Homeland Capital Group
71. Nation One Mortgage
70. Dana Capital Group
69. Millenium Funding Group
68. MILA
67. Home Equity of America
66. Opteum (Wholesale, Conduit)
65. Innovative Mortgage Capital
64. Home Capital, Inc.
63. Home 123 Mortgage
62. Homefield Financial
61. First Horizon (Subprime)
60. Platinum Capital Group
59. First Source Funding Group (FSFG)
58. Alterna Mortgage
57. Solutions Funding
56. People's Mortgage
55. LowerMyPayment.com
54. Zone Funding
53. First Consolidated (Subprime Wholesale)
52. EquiFirst
51. SouthStar Funding
50. Warehouse USA
49. H&R Block Mortgage
48. Madison Equity Loans
47. HSBC Mortgage Services (correspondent div.)
46. Sunset Direct Lending
45. Kellner Mortgage Investments
44. LoanCity
43. CoreStar Financial Group
42. Ameriquest
41. Investaid Corp.
40. People's Choice Financial Corp.
39. Master Financial
38. Maribella Mortgage
37. FMF Capital LLC
36. New Century Financial Corp.
35. Wachovia Mortgage (Correspondent div.)
34. Ameritrust Mortgage Company (Subprime Wholesale)
33. Trojan Lending (Wholesale)
32. Fremont General Corporation
31. DomesticBank (Wholesale Lending Division)
30. Franklin Financial (Wholesale Operations)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ResMAE Mortgage Corporation
24. ECC Capital/Encore Credit
23. Lender's Direct Capital Corporation (wholesale division)
22. Concorde Acceptance
21. DeepGreen Financial
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

These two lists are just mind boggling! What is going on with the mortgage industry? What are your thoughts? Share your thoughts with us here.

* Note: Everything that you found in this blog was all found on ml-implode.com (as of 8-22-2007)

Posted by Nima Rezvan First Time Home Buyer Expert CT FHA Loans - FHA 203k - CT Mortgage on 08/14/2007 04:39 PM

Comments (26)

nationaly city home equity, novastar mortgage, option one, cit home lending, fnba, greenpoint mortgage, all fund mortgage, quick loan funding

This post has been included in Connecticut Information Fairfield County, CT Information Stamford, CT Information

26 Comments on (VERY INTERESTING) "Imploded" Mortgage Lenders & Ailing/Watch List Mortgage Lenders

AUG

2007

Oh no! This was my 300th blog! And it was sharing negative news about the mortgage industry? Who would have ever thought that my 300 blog 13-14 months after starting out my first blog that it would be about sharing negative news about the same industry that I am in myself. Very odd.

Where do you see the mortgage industry going? What are your thoughts? Share them here. This is a very serious topic and I am sure you want to share your opinion with us.

This was quite a sobering list. It's unfortunate to observe what is going on in the lending industry right now. This list represents a lot of lost hopes, dreams and livelihoods.

Pretty scary list. I'm sure each of these companies will have many sad stories to go with it.

Lola Audu: I can't believe how really bad the mortgage industry is. It is mind boggling. I know that I personally did not want to do anything else but what if it really gets bad? I am so happy that I work for the best company and such a large lender that I have no fears and I am confident to keep moving forward.

Bill Gillhespy: Are you having a lot of problems with your buyers? Did you know 2 of my Purchase transactions are getting possibly kicked to next month and it is not my fault at all or my companies. The other lenders are going out of business and dropping like flies. They are changing guidelines and the purchases I have were contingent on the sale of their other properties and they all are not going to happen when they were supposed to. This is very ugly and it makes me upset but atleast I know and my clients know that I didn't do anyting wrong and I have been ready to close their purchase deals for a while now.

AUG

2007

They missed about 500. American Home Loan comes to mind off the top...

thats crazy.... i dont believe it cant get any worse.... the worse part is behind us

Jim McGrath: I believe you are referring to American Home Mortgage? Right? Well, some of those guys are sitting next to me now already working here at my office.

J.R. Quarles: I don't want to say that its behind us because I am watching CNBC religiously and I heard it is going to get worse. I also heard as much as until 2014 it will take until the real estate market and mortgage industry comes back. But everyone is saying 2009 for the time being but I also heard 2014 which is very scary!!!

I"m not sure how to take all of this. It just makes everyone afraid to take action. I guess that I belive that all of us in the industry need to seek out other products to help our clients. Partnerships with loss midigators in your market, reputable credit repair companies, etc. There is a silver lining here we just need to look for it.

Kate Bourland: I just feel bad for the real estate professionals who were servicing 80-90% of their clients who were REDUCED DOCUMENTATION and were receiving 100% financing. Those days are long gone and not sure when those days would ever come back. You said it well, it's scary. I know it is. I know there is going to be a ton of people leaving the real estate business and the mortgage business. This is the time to look at your business and make smart decisions. Focus is very key in the coming months!

NOTE: Everyone who is worried and scared, they should just take a big step back and realize that in the 1980's the rates were in high teens and you had to put 20-30% down payment so we are still okay.

Just need to work harder and smarter during these tough times!

Wow...the imploded list was at 110 when I looked at it last Wednesday..............

Seth Callen: The list is getting bigger and bigger! What an ugly situation the lenders are in and the industry. Just have to keep your head up and continue to do what you do on a daily basis.

AUG

2007

UPDATED: 5 more mortgage lenders have gone belly up! OUT OF BUSINESS or soon to be!

First Magnus

First Indiana Wholesale

Pacific American Mortgage (PAMCO)

Spectrum Financial Group - Wholesale

Transland Financial Services - Wholesale

This is unbelievable!

I was given this same Website by someone else in my company: it is a bit scary. However, I do not think it is as dire as the 1980's. I would call it a correction, rather than an apocalypse. Everyone seems to be speculating now, because no one knows where this is going (and there is no one out there who's last name is Nostradamus, at least, I THINK there isn't), but it will shake out, in the long run. The short run will be a rollercoaster ride, though.

James H: You said it best. This is a crazy rollercoaster ride for sure. The markets were destroyed at one point once again today but they sure did rebound. The DOW was down over 350 and it sure did make a strong comeback. I'm getting bombarded with CALLS and CALLS and CALLS all regarding what is going on with all of the mortgage companies! Absolute chaos if you ask me. I really like my own blog here because I get to update it for everyone and people can check back to see who else went out of business.

AUG

2007

Big Relief to not be on that list at this point.

I am very grateful to be part of a well run mortgage and banking operation that limited its exposure.

I really still have all of my programs intact also.

www.suntrustmortgage.com/mdjones

Unfortunately, employees at First Magnus and American Home Mortgage felt the same way minutes before they received word that their companies were filing for Bankruptcy protection. One day, all of their programs were intact, and they were telling their clients that there was nothing to worry about. The next day, they were gone.

Dear Real Estate Professionals,

News about the current state of the mortgage industry can be unsettling for those of us who make our living in this business. This challenging time has brought about greater than usual media coverage of our sector, including coverage about Countrywide.

With all the information that's being distributed, I wanted to take a moment to personally update you on what's going on at Countrywide.

• We have supplemented our existing liquidity options by infusing an additional $11.5 billion in to our operation through a syndicate of 40 of the world's largest banks. More than 70 percent of this facility has an existing term of greater than four years.

• We announced our strategy to fund a significant portion of loans through Countrywide Bank, which has approximately $100 billion in assets. Today, we fund approximately 70 percent of our loans through Countrywide Bank, and expect that nearly all of our loan volume will be funded through the bank by the end of September.

• We expect that approximately 90 percent of the loans we originate will be eligible for funding through Countrywide Bank or the Government Sponsored Entities (Fannie Mae, Freddie Mac).

• Just this week, we increased our product options for fully documented Jumbo loans.

I want to let you know that while this industry turmoil may continue for some time, Countrywide is here to assist you in and meet the home loan needs of your customers.

While the current industry news can be unsettling, know that I am here, backed by Countrywide, to meet your mortgage lending needs. Feel free to contact me directly by phone or email.

Sincerely,

Nima Rezvan

Home Loan Consultant

Countrywide Home Loans

5 more companies went bankrupt today!!! = (

128. NovaStar Wholesale
127. Quick Loan Funding
126. National City Home Equity
125. Calusa Investments
124. Mercantile Mortgage

As of 8-17-2007

Wow!

Angelica Blatt: WOW is absolutely right! This is just out of this world. I can't comprehend this at all. 128 mortgage companies have gone out of business. Is this for real? I keep pinching myself to see if I am having a nightmare or not. I don't want to know what the number will be up to by this time next Friday. This is absolute mortgage chaos.

AUG

2007

NEW BLOG: Mortgage Man's Top 10 SIGNS WE ARE IN A NEW MARKET

129. GreenPoint Mortgage - Capital One Wholesale

The mortgage meltdown continues..

(as of 8-20-2007)

AUG

2007

It is amazing seeing everyday more and more lenders close the doors. It just really shows how real estate is a constant cycle. I had just funded a loan with Aegis the Friday before they shut down. I had a large office in 1994 and by 1996 I watched several of the companies I brokered to shut down. This time it has a much different feel to it. I feel a lot could of been prevented in the way of the short sale and foreclosure market. I had 3 clients walk from their home because their lender wouldn't work with them. I big problem I am seeing is the 2, 3 and 5 year fixed products that have come time to adjust have gone up 3 points in most cases, creating payment increases of at least 1,000. They of coarse all planned to refi at the end of the term and found the value was just not there. So instead of the banks renegotiating the terms so they would continue to have interest coming in they decided not to work with the homeowners which left the bank not only with no more interest coming in but with a foreclosure as well. Where is the common sense in that approach? I also feel that if a borrower has been paying on the loan with no missed or late payments for well over a year and has a LTV of 75% why audit the file and look for stuff and call the loan due. Isn't there enough loans to check with defaults?

131. Accredited Home Lenders
130. First National Bank of Arizona (FNBA) Wholesale, Correspondent

131 Mortgage Lenders have gone out of business as of 8-22-07

AUG

2007

Speechless is the word that comes to mind. I hadn't really looked at the list, but just like bad mail, ya gotta open it.

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