Market Street Mortgage on Hold, Seeking Buyer

October 2, 2007 No Comments »

When NetBank was shut down by the FDIC Friday, it left retail mortgage unit Market Street Mortgage hanging in the balance.

Market Street Mortgage, which was acquired by NetBank in 2001, is now in search of a suitor.

The good news is there seems to be multiple offers for the retail mortgage lender, and federal regulators believe they may have a deal by the end of the week.

“We have a couple of motivated buyers,” the FDIC’s Dan Bell told Market Street employees in a Monday morning e-mail announcing that he is the company’s new chief executive officer.

Former CEO Randy Johnson, who was removed from his position as a result, is acting as a consultant for the sale of the lender.

In the meantime, no new loan applications are being accepted, and borrowers looking for a loan are being turned elsewhere.

Loan applications that were approved prior to Sept. 28th will continue to be processed and fund so long as conditions are met.

Tampa based Market Street Mortgage has 590 employees in 16 states and made $3.2-billion in loans in 2006.

In August, NetBank said it would take a $24.6 million non-cash impairment charge for the second quarter ended June 30, relating to Market Street Mortgage.

Check out the latest list of mortgage mergers, layoffs and closures.

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