Tuesday, January 02, 2007

Mortgage Lenders Network stops loans

by Bill McBride on 1/02/2007 06:17:00 PM

The rumors are true. From Reuters: Mortgage Lenders Network stops loans, sets layoffs

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.
...

Meanwhile, some lenders have been pinched by being forced to buy back loans they sold because of rising delinquencies, and as "warehouse" lenders pull credit lines, analysts said.

Unlike most subprime rivals, Mortgage Lenders increased its lending throughout 2006. It made $3.31 billion of subprime loans in the third quarter, ranking 15th nationwide, according to data from National Mortgage News.

The firm, however, said wholesale market conditions have "deteriorated dramatically" in the last two months.
And they just broke ground on their new campus:
MLN’s President & CEO Mitch Heffernan surveys the site of MLN’s new corporate headquarters located in Wallingford, CT. Construction is underway on the 305,000 square foot campus.