Tuesday, January 02, 2007

Credit is getting very tight

Per their website:

Mortgage Lenders Network, USA is not currently funding loans or accepting new applications through the Prime and Non-Prime Operating units. We are currently exploring strategic alternatives for the Wholesale Business Lines.

If you have questions regarding loans that were in the pipeline, please contact your Regional Production Office or your Business Development Manager.


Bakersfield Bubble said...

Per National Mortgage News:

MLN Stops Funding; Future in Doubt

Subprime wholesaler Mortgage Lenders Network, Middletown, Conn., has stopped funding loans, and is talking to investors about a possible sale of its assets, industry sources have told MortgageWire.

Anonymous said...

Who turned the lights on?

Great job covering the subprime blow up. The tightening of credit in the face of declining interest rates will be the paradox of 2007.

Happy New Year!

P'cola Popper

Bakersfield Bubble said...

NEW YORK, Jan 2 (Reuters) - Mortgage Lenders Network USA, a large U.S. subprime lender, said it has stopped funding loans and accepting applications for loans, citing deteriorating conditions in the mortgage market, and has temporarily laid off about 80 percent of its 1,800 employees.

Privately held Mortgage Lenders also said it is in "strategic negotiations" with several Wall Street firms regarding its loan operations.

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Roughly four-fifths, or about 1,440, of the Middletown, Connecticut-based firm's employees are on "temporary furlough," spokesman James Pedrick said in an interview.

Mortgage Lenders said it has five regional lending offices and employs about 950 people in its home state.

The retrenchment is the latest sign of stress among subprime lenders, which make higher-cost loans to people with weaker credit histories.

It comes less than a week after similar-sized rival Ownit Mortgage Solutions Inc. filed for Chapter 11 bankruptcy protection.

Bakersfield Bubble said...


Yeah the Black needs to be changed.

Anonymous said...

Loan subprime do hard time. You know who you are. Have any stories you want to tell Mr. subprime guy, were here we will listen to you. Come on in and send us a blog. We want to here about all the shady things that go on in the subprime pit.

Anonymous said...

Ok so no subprime people want to come forward to tell their side of the story. Well here is what one of you said.

"Ok, I may be just over-reacting here but; with the official Exit of MLN now today, I can't help but wonder if my company will exist even in 3 or 6 months from now? I know for a fact we're one of the most "conservative" lenders out there, but; at the rate this consolidation is happening, I'm SCARED"

He's scared. Well how about that.

Anybody want to talk about it? You know you guys really have not been around that long so don't go thinking you are going to live past this.