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My e-mail from Accredited this morning. DOORS CLOSED!

By
Mortgage and Lending with Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL

 

Valued Broker,

As you are aware, the non-prime mortgage industry is facing a severe liquidity crisis that's affected even the largest players in our space.  Currently, the secondary market for loans has shut down for all but conforming loans and the price for non-prime and Alt-A loans is well below par.  Regrettably, there is universal agreement that the market will remain irrational for the foreseeable future.

At Accredited, we've worked hard over these past few months to continue to fund loans.  Unfortunately, the market head-winds have become too strong - so we are consolidating six of our loan fulfillment centers, while retaining five centers to cover all time zones in the U.S.  These changes will cut the overall staff by more than half.  Our goal is to come out of this storm and deliver what you've come to expect from us: superior service and a broad menu of products for qualified borrowers.

Here's what this means to you:

  • Effective August 22, 2007, we will no longer be accepting new loan submissions for approval.
  • We will honor all outstanding funding commitments, and expect that the last funding commitments will expire in early September.

If you have any questions, please contact the division office that has processed your business in the past.  For now, offices remain open with a core support team on hand to provide assistance.

Thank you for your support during these turbulent times.  We will keep you updated on events here at Accredited and genuinely hope that we can do business together again in the not-too-distant future.

American Mortgage Werks continues to use sources of funds that are stable
and have a history of solid performance.  We are staying in tune with
the market, and can provide a safe haven for those borrowers affected by
recent company closures.  Please call me if you would like more
information on where this whole thing is headed, or if you have a
customer orphaned by the recent company closures.

Kris Krajecki

630-347-6321

Comments (10)

Joyce Heffner-Williams
Keller Williams Clients' Choice Realty - Monument, CO
Owner/Broker/EcoBroker - Monument Real Estate
It is crazy out there right now!
Aug 22, 2007 02:24 AM
New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor
RE/MAX Properties Unlimited, Real Estate - Morristown, NJ

Yup, another risky player bites the dust.  There will likely be many more before this is done.

 

 

Aug 22, 2007 02:28 AM
Toby Boyce
C.G. Boyce Real Estate Co. - Delaware, OH
MBA, Delaware Ohio

Okay, maybe I'm an idiot. Are they closing or consolodating and trying to survive?

They are not taking any new applicatios, but are only cutting half the work force.

Toby

Aug 22, 2007 02:35 AM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL

Accredited wasn't too risky! They had tightend thier underwriting standards way back in January!

It is scary to see lenders like Accredited, First Magnus, and even Huge Huge Countrywide in trouble.

Thank goodness we still have over 150 lenders left to choose from.

:-)

Aug 22, 2007 02:35 AM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL

I saw that too..... I thought that they were consolidating...

But not taking any new loans means closed to me!

:-)

Aug 22, 2007 02:36 AM
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Kris, It is getting so bad now when I see a subject line ATTN: Important Notice. I am almost afraid to open the email.
Aug 22, 2007 02:48 AM
Sarah Eubanks
Hill Valley Financial Services - Oregon City, OR
Preferred Oregon Loan Consultant & Notary Public
Fortunately, for me, they are a group I had never personally used.  I am waiting to see what continues to happen.  Perhaps Mr. Trump can some flying in on his white horse again...oh, never mind, it is not likely is it?!?!  Hang tight, it will come to an end eventually!
Aug 22, 2007 02:48 AM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL

It IS very scary....

I try to "choose wisely" when it comes to where I place my borrowers....but lenders either lie or the AE's don't know what is going to happen!

Just last week I received an e-mail from accredited stating that they are now at 95% LTV and that they are stronger than ever and not going anywhere?!

I always go conforming if possable and I always choose a big big name bank these days.

:-)

Aug 22, 2007 03:02 AM
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage

I read this earlier this morning - it seems that they haven't fully closed yet, they're just not accepting applications.  Looks bad, though!

Aug 22, 2007 03:06 AM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL

If they are not accepting applications, then what good are they? They are closed...yes...for now, but still closed.

There were many lenders that said, we are closed for now-but we'll be back! We see how THAT worked out for them.

:-)

Aug 22, 2007 03:11 AM