More Job Cuts at Bankrupt Quality Home Loans

November 19, 2007 No Comments »

Quality Home Loans, a bankrupt Southern California-based wholesale hard money lender, has suffered additional job cuts as part of ongoing bankruptcy proceedings.

David Gould, the trustee appointed to oversee the bankruptcy, has cut the company’s remaining workforce from 25 to roughly 10 employees.

Included in the latest job cuts were Quality Home Loans’ chief executive Alim Kassam, chief operating officer Brian O’Shanassey, the company’s general counsel Robert Pohl, and other unnamed employees.

Gould also noted in a court filing that a deal to sell Quality Home Loans to Santa Barbara-based hedge fund Pacificor had not been completed as planned.

Currently, Quality Home Loans founder John Gaiser and Pacificor’s Michael Klein both claim ownership of the now defunct lender, but the bankruptcy court will ultimately decide the fate of the company.

In August, the Agoura Hills, California-based hard money mortgage lender filed for Chapter 11 Bankruptcy in a Woodland Hills courthouse, listing roughly $758,000 in assets, $5.6 million in liabilities, and 2,000 creditors.

Quality Home Loans was one of the largest hard money lenders in the United States, originating roughly $461 million in loans in 2006, with gross revenue of about $49 million.

According to their website, the company offered mortgages to borrowers with sub-500 fico scores (beyond subprime), along with borrowers in foreclosure or just out of bankruptcy.

It is believed that the company is no longer originating mortgage loans.

A sister corporation of Quality Home Loans, Agoura Hills-based Home Savings Mortgage, filed for Chapter 7 bankruptcy on September 4th.

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