Another mortgage lender bites the housing bubble dust.
According to the Mandalay Mortgage website, the Orange County loan originator will no longer accept new loan applications as of January 24.
Existing loans with documents signed or ready to be signed will still be processed, but all other applications have been, or will be returned.
This is just another sign that the subprime market sold some very bad loans, and the increased number of buybacks has shattered any profits made by these companies in the past few years.
At this point it’s not a question of will another suprime lender shut down, but when?
See all the closed lenders to date.