Lownhome Financial is apparently closing up shop after just over a year in the wholesale mortgage business.
But with Citigroup’s recent purchase of former subprime giant Argent, Lownhome may have been squeezed out of the market.
The company has not released a statement regarding the closure, but many mortgage brokers have reported that the company stopped taking new loan applications early this week.
Reports indicate that roughly 100 workers will be laid off as a result of the closure.
The Lownhome website is still up, though it simply says “under construction”.
I was able to pull up a cached copy of the website which revealed an interesting tagline: “We deliver easy-to-understand mortgage options for your borrowers with credit scores above 560.”
So it’s clear the company dealt in some high-risk loans, and in this market, that’s enough to halt operations.
Lownhome Financial was started by former CEO of First Franklin Marc Geredes, along with other ex-employees.
The company is headquartered in San Jose, California and runs three regional operating centers out of Pittsburgh, Pennsylvania, Beaverton, Oregon and Calverton, Maryland.
It is assumed that locked loan applications will continue to be processed and funded.
See more closed mortgage companies, layoffs, and rumors.