First NLC Financial Services Halts Lending, to file BK

January 11, 2008 No Comments »

According to an announcement posted on their website, First NLC Financial Services has ceased loan origination.

Per a bulletin on their website: “Due to conditions beyond our control, effective immediately we are no longer taking applications.

Those loans where closing documents have been executed will be funded in the normal manner.

Please call the number or email at the address listed below for additional information…561-962-6728.”

In late November, I was told by sources close to the company that First NLC planned to close 24 branches nationwide, shuttering their operations on the west coast and cutting more than 100 jobs in the process.

At that time, it was believed that only six retail branches would remain open, along with an operations center at its headquarters in Boca Raton, Florida.

First NLC was one of the top non-prime residential mortgage lenders in the nation, originating over $7.4 billion in mortgage loans in 2006.

In 2005, FBR bought the subprime lending unit for $101 million and arranged a sale last summer to an affiliate of private equity firm Sun Capital Partners.

Update: FBR said First NLC will file for Chapter 11 bankruptcy protection and plans to liquidate the company. It does not plan to recoup the $12 million investment it made in the failed lender, and does not plan to complete the proposed sale of the company.

Check out the latest list of closed lenders, layoffs, and mergers.

Leave A Response