Here’s a bit of good news for a change.
TransLand Financial Services Inc. received court approval to secure $30 million from four lenders to finance new loans, a glimmer of hope for the under pressure mortgage lender.
Through the new financing agreement, TransLand will now receive funding from NattyMac Capital LLC, Guggenheim Mortgage Capital LLC, Tampa Funding LLC and Neighborhood Funding Inc.
“The $30 million in new funding is great news and secures the future of TransLand Financial Services,” said Roy Kobert, an attorney for TransLand Financial Services Inc.
Just three weeks ago, the company had been forced into involuntary bankruptcy by Federal Trust Bank, MidCountry Bank, and Tier One Bank who accused the lender of failing to remit loan payoffs worth $22 million.
The lender continued to process new loan applications, but was unable to obtain the financing needed to fund the deals, though TransLand was able to fund existing loans via Mercantile Bank, UBS, and Washington Mutual.
TransLand laid off 40 employees in the last month, and now has less than 60 workers at its Maitland, Florida headquarters.
According to the company website, the lender has 11 branches in five states, and still does business in roughly 30 states.