Nearly 150 Major Mortgage Lenders Shut in 2007

January 22, 2008 No Comments »

According to data from Mortgagedaily.com, an astonishing 147 major mortgage lending operations shut down last year.

The list includes big names such as American Home Mortgage, Greenpoint Mortgage, New Century, Option One Mortgage, Ameriquest, and First Magnus Financial, to name but a few.

The record numbers could be broken down to an average of three mortgage lender closures a week, or 12.25 per month during one of the worst years in the industry’s history.

“The subprime mortgage industry, which took decades to develop, was mostly dismantled over the past year,” Sam Garcia, publisher of MortgageDaily.com said in a statement accompanying the release.

“In addition, we have seen a significant shift away from mortgage brokering as both Alt-A and subprime wholesalers have shut down. Surviving lenders are primarily originating conforming loans through their own employees.”

The publisher considered only those companies who were responsible for at least 50 employees, keeping the numbers lower than those reported at other outlets such as the Implode-o-Meter, and excluding scores of smaller mortgage broker operations who shut down shop as well.

The closures represented an 800 percent increase from 2006, when only 18 mortgage companies went belly up.

According to their data, seven companies have already failed since the beginning of the year, indicating a slower pace than 2007.

Check out the latest list of mortgage layoffs, mergers, and lender closures as compiled by The Truth About Mortgage.com.

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