Daily News and Information for the Mortgage Loan Originator
Trump Mortgage – You’re Fired!
Monday, August 13, 2007
- By Staff Writer, Originator Times
NEW YORK, NY – With over 70 victims already claimed by the Subprime/Alt-A mortgage mess, add Trump Mortgage to the list. According to published reports, Donald Trump has pulled the plug on Trump Mortgage less than two years after its launch.
The multi state mortgage company had been plagued by bad timing and the disclosure that the firm's chief executive, E.J. Ridings, had inflated his credentials.
The company’s plans initially projected doing $3 billion in loans, but barely reached the $1 billion level, according to a report in Crain's New York Business.
In classic Trump style, Trump downplayed the company’s failure stating it was only a licensing deal and he maintained no ownership interest, then promptly signed another licensing deal with First Meridian Mortgage.
Under the terms of the new deal, First Meridian Mortgage will be changing its name to Trump Financial.
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American Home Mortgage May Lay Off Thousands With the demise of the mortgage giant American Home Mortgage looming, the company admitted yesterday that is was unable to fund approximately $800 million in loans promised to borrowers Monday and Tuesday. Loans that were not funded included retail loans and loans by their wholesale division American Brokers Conduit.
NovaStar, National City, and Aegis on Shaky Ground In the wake of the 10th largest lender in the nation, American Home Mortgage declaring chapter 11 bankruptcy protection earlier this week, National City Corp's wholesale home-equity division stopped accepting applications and Houston-based Aegis Mortgage Corp. shut down it's mortgage operations. Meanwhile, NovaStar Financial, Inc. suspended issuing new commitments until today.
HomeBanc Sells Branches to Countrywide, Files for Chapter 11 Another victim was claimed by the Sub-prime/Alt-A meltdown last week when HomeBanc Corp., a regional lender in the southeast, announced that the company intended to “exit the mortgage loan origination business.” The company also said that it had reached an agreement with Countrywide to sell HomeBanc's retail loan origination operations, including up to five branches located in Georgia, Florida, and North Carolina.
NovaStar Pink Slips 500 NovaStar Financial, Inc. announced a reduction in workforce to align its organization and costs with an expected reduction in loan originations. The employment reduction affects approximately 500 persons, about 37 percent of the Company's workforce.
