According to Albany, NY new website Timesunion.com, subprime lender Guardian Loan Co. has ceased its operations.
Roughly two weeks ago several former employees of Guardian Loan Co. contacted the local paper to inform the public that the lender had shut its doors.
An ex-employee told the paper that in early August, company officials notified employees that they would not be able to pay them.
Most of the employees walked out as a result, though the company remained open for about another week before ultimately folding.
There was no formal announcement made by the company, and the website is still fully functional with no signs of distress.
I made a call to the phone number listed on the Guardian Loan Co. website to verify, and the number is indeed disconnected.
According to the article, the company rose quickly during the subprime boom, expanding from a struggling family auto-loan business in 2000 to a direct lender with 250 employees and offices in California and Connecticut at its peak in 2004.
But earlier this year the company laid off 75 employees as subprime woes began to take their toll, and it’s easy to see why.
After a quick trip to their website, I found that the lender offered 100% financing, option arm loans, super-jumbo mortgages, “B-C-D credit grade financing”, and “No Private Mortgage Insurance (PMI) Loans”, just to name a few.
It is unknown what their monthly funding numbers were, and whether the company will be re-launched in the future.
Guardian Loan Co. is headquartered in Clifton Park, New York, and also has an office in Hackensack, NJ.