Tuesday, January 02, 2007

MLN Video - Employees told to box and leave

From Eyewitness News Conneticut Channel 3:

Conn.-Based Lender Stops Funding New Loans
Employees Leave Office With Boxes In Hand

ROCKY HILL, Conn. -- Hundreds of workers in Rocky Hill left the office of a billion-dollar national company with boxes in hand and tears in their eyes.

Mortgage Lender's Network, headquartered in Middletown, recently stopped funding new loans.

The company is a wholesaler that funds loans set up by local brokers.

Although the company has not publicly commented on how this will affect employees, Channel 3 Eyewitness News reporter Eric Parker said that workers leaving the Rocky Hill office Wednesday said they were told to bring their belongings with them.

"We're not going to get paid. We keep our benefits for two weeks, and we're not going to have a severance package. They're just sending us on our way and saying, 'Take care of your families,'" said MLN employee Melissa Goyette.

Employees of the company told Eyewitness News that the company is closing after losing a large financial backer and the failure of a last-minute bid to raise cash. According to the workers, as many as 700 employees could lose their jobs. The company employs about 1,000 workers.
The company was in the middle of building a new location in Wallingford that was to open later in the year.

Wallingford officials said that they are unsure what the company's announcement means for the future of the new office space.

Mortgage Lender's Network officials did not return Channel 3's calls requesting comment. The state Banking Department said that it heard that the company was struggling, but that it has no indication that the company will close altogether.

The company's workers said they expect to know within two weeks if there's any chance of saving their jobs.

Goyette said that in the next two weeks she's going to "sit and wait and send out my resume."

If you have more information about the company's closure or if your loan was affected by the company's decision to stop funding new loans, e-mail Eyewitness News reporter Eric Parker.


Anonymous said...

That looks like the same scene from the Enron debacle. Where is the big "M"? LMAO

Anonymous said...

These guys were the #12 lender in the US.

Bakersfield Bubble said...

"...billion-dollar national company..."

Anonymous said...

You can bet those employees will be talking..no hush money.

Anonymous said...

Let the Congressional hearings begin.

They can ask questions like do you belief that subprime lending is dangerous to someones health?

I don't know Mr. Congressman, I always got my orders from Ritchie the subprime pit boss, there was always a buffer between me and the CEO, you now Mr. Congressman there are lots of buffers in subprime. Yeah thats right Mr. Congressman there are lots of buffers in the family, oh I mean subprime.

It is time for the subprime mortgage officers to come clean and report all the wrongs?

Anonymous said...

Are you now or have you ever been a mortgage broker? Do ou know of any mortgage brokers currently operating the country?

There must be twenty buildings around Ventura with Countrywide signs on them. People are gonna forget all about MLN when one of the bigs goes bust.

Anonymous said...

I can hardly wait for Countrywide to bite the dust.

Anonymous said...

Mozillo & Crsip sittin' in cell...
All their customers in mortgage hell
First comes perp walks
Then comes trials
While we bubbleheads are nothin' but smiles.

Bakersfield Bubble said...

I agree #12 is not high enough. Someone in the top 7 will meet this same fate.

Anonymous said...

I want more subprime mortgage companies to bite the dust. I can hardly wait until they all go belly up. All you little mortgage broker outfits, especially the ones that cater/screw over the less educated people of our society lose your funding source.

Bakersfield Bubble said...

Hat tip to Housingdoom.com:

State banking officials investigate mortgage lender

Associated Press

Published January 3 2007

HARTFORD, Conn. -- State banking regulators are investigating the viability of a mortgage lender that has brokered billions of dollars in mortgages to people with poor credit histories, after it stopped funding loans and accepting new applications.

Middletown-based Mortgage Lenders Network USA laid off at least some of its employees this week, said James Heckman, spokesman for the state Department of Banking. Investigators are looking into the company to see "that they're still able to conduct their business," he said.

Bank investigators acted after receiving tips, Heckman said. He would not disclose what information the tips conveyed, but said officials learned that the company laid off workers on Tuesday.

The company, which bills itself as one of the country's top subprime mortgage lenders, said this week that it is "currently exploring strategic alternatives" for its wholesale business lines, according to telephone recordings at least two of its wholesale lending offices.

A call was placed to Steven Olearcek, MLN's senior vice president and general counsel, seeking comment.

MLN, which opened in 1997, rapidly grew to employ more than 1,300 people, broke ground in May on a new 300,000-square-foot headquarters. It said it's 2006 goal was to produce more than $12.1 billion in loans.

Heckman said that MLN has halted its wholesale business, which accounts for about 85 percent of the company's operations.

Anonymous said...

"...Bank investigators acted after receiving tips"

Start Signing!