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SCME Ceases Wholesale Operations

According to a company e-mail, SCME Mortgage Bankers Inc. will cease wholesale operations effective the end of business today.

“We would like you to know that SCME has valued our relationships over the past 24 years, resulting in strong partnerships and lasting friendships. Thus, our decision has not been made lightly, nor has it come easily.”

“Effective the close of business today, September 28th, 2007, SCME will no longer accept wholesale business. Any loan that is not funded as of today will be returned to our customers.”

One employee said no one saw it coming, as the company apparently gave no indication they were closing down.

Another employee said, “Each manager held a meeting with their staff and shared the decision…everyone is shocked.”

Unlike most mortgage lenders that have ceased operations recently, SCME is apparently canceling any loan that has not yet funded.

Typically lenders will continue to process loans that have already been locked, but that’s not the case here; scary if you had loans with SCME.

Apparently the company is retaining its retail unit, as one e-mail I received said, “Hey – I just confirmed with corporate that they are keeping the retail group.”

Another e-mail said, “Nine branches and all of their corporate employees are affected with this decision.”

About a month ago I reported SCME layoffs and branch closures after receiving word that the lender shut two branches and laid off a large number of employees in several different divisions.

SCME Mortgage Bankers Inc. was a wholesale/retail lender with 11 branches, 7 of which were located in California.

From what I understand, two branches (Encino, CA and Sacramento, CA) were closed a month ago, and the remaining nine will shut down today.

It is believed that the corporate office in San Diego will remain open to facilitate retail operations.

Per the SCME website, the company was originally founded in 1984, and funded $5 billion in loans in 2005.

See the latest list of closed lenders, layoffs, mergers, and rumors.

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