Thursday, March 01, 2007

Update II - Ivanhoe Mortgage (Central Pacific Mortgage)

Execellent report and summary of the collapse of Ivanhoe Mortgage (Central Pacific Mortgage) from George Warren @ ABC News 10. Also, watch the Video from George :

Former employees of Folsom-based Central Pacific Mortgage are angry over the lack of warning before this week's sudden layoffs.

As News10 first reported Tuesday, Central Pacific Mortgage and its Florida-based division Ivanhoe Mortgage abruptly closed their doors Monday saying they had no money to meet Wednesday's payroll.

News10 attempted to contact Central Pacific Mortgage CEO John Courson, who founded the company in 1977.

Calls to the Folsom headquarters are answered with a recorded announcement. A phone number listed for his home in Rancho Murieta is disconnected.

Courson serves on the board of directors for the Mortgage Bankers Association and was appointed by Governor Schwarzenegger to the board of the California Housing Finance Agency

A veteran Sacramento loan broker and past president of the California Association of Mortgage Brokers says the failure of Central Pacific Mortgage is just the "tip of the iceberg" in the mortgage industry.

"It's like a freight train coming at us full bore," said Michael McGee of Winchester-McGee Financial. "The type of risk that's been involved in the industry is far beyond anything I've ever seen."

Tip of the iceberg, I sure hope this "veteran" from Sacramento was telling the members of his association this in 2005 and 2006.


Lander said...

Update: Housing Wire

Bakersfield Bubble said...


Anonymous said...

Hey just curious, I closed on an Alt A loan with CPM on Feb 16, I havent gotten anything about a payment or sale or anything yet, who am I going to make my payment to? Did my loan get sold or would no one buy it?? Thank you for your input