Diablo Funding Group, one of the largest independent mortgage brokerages in Northern California, is shutting down operations this week amid the ongoing mortgage crisis.
CEO Anthony Battagello pointed to recent difficulties in the housing and mortgage industry, saying “The economic environment has been difficult for us.”
He noted that most of the Diablo Funding agents would be moving on to other companies after operations cease this week.
Diablo Funding, located in San Ramon, CA, was founded in 1992, providing retail loan origination through a huge network of over 650 independently licensed loan consultants and operations staff.
The lender provided financing through its in-house mortgage bank Bay Bancorp, while offering loan programs from 400 wholesale mortgage lenders nationwide.
Diablo Funding extended home loan financing to borrowers in 18 states via more than 40 network mortgage brokers and affiliated branches.
Late last year, Diablo Funding Group acquired the Orange County Division of the Wausau Mortgage Corporation.
The company was named the #1 mortgage broker in Northern California by the San Francisco Business Times for three years in a row.
According to their website, Diablo Funding has originated more than 100,000 loans with annual funding volume in the billions.
It is unclear at this time if loans already in progress will continue to be processed.
See the latest list of closed lenders, mortgage layoffs, mergers, and rumors.
Update: Word on the street is that loan repurchases ultimately forced Diablo Funding out of the market. It’s also rumored that IndyMac is buying a portion of Diablo’s loan pipeline.