I’ve just heard that the rumors may be true, with MortgageIT apparently halting the loan origination and funding of subprime loans.
According to another mortgage blog, the Deutsche Bank subsidiary sent out an e-mail explaining to customers that it in light of of the current lending environment, subprime lending would be discontinued.
I have also received separate reports that there have been layoffs as a result, and that MortgageIT is now only offering agency-backed, conforming loan products.
Several weeks ago they had discontinued their second mortgage programs.
It is believed that MortgageIT shut down their recent mortgage lender acquisition, DB Home Lending, resulting in numerous layoffs.
From what I’ve heard, MortgageIT was having a difficult time unloading non-conforming loans on the secondary market.
MortgageIT has not released a statement regarding the reduction in loan programs.
Breaking. More coming.