Sub-Prime Mortgage Brokers
With so many borrowers falling behind on their bills, the demand for subprime mortgage brokers has never been stronger. Lenders Nationwide offers access to Sub-Prime Mortgage Brokers, who offer the best hard money loan programs in the country. Tap the equity in your home and partner with the top equity lenders online. Get cash out with your home equity for debt consolidation or simply accessing additional cash. 2nd mortgage loans can be a valuable tool for many purposes. Get a traditional Rate & Term Refinance mortgage or consider a Cash-Out Refinance while the interest rates are still below seven percent nationally.
Find the Sub-Prime Mortgage Brokers in your neighborhood! Search for lenders and shop interest rates with the top home mortgage lenders online. Get free quotes for mortgage refinance and with programs for bad credit, rate and term, debt consolidation and cash out.
Mortgage Lender Shuts Door
In a recent article, Elizabeth Rhodes reported that MILA shut down their 300-employee mortgage business. An associate close to the company said they hoped to find a buyer who would resuscitate MILA. Instead, the Mountlake Terrace firm Monday asked the federal bankruptcy court to protect it from its creditors, joining scores of other lenders felled by the subprime-mortgage debacle. The Chapter 11 bankruptcy petition listed less than $8 million in assets and $174.7 million in liabilities. The mortgage company said it has more than 200 creditors and $98.7 million in secured debt. Some $76 million in unsecured debt was claimed by some of the nation's biggest lenders. Among them are Bear Stearns, with a $21 million claim; GMAC/RFC, $10.5 million; and Goldman Sachs Mortgage, $6.8 million.
Others banks with multimillion-dollar claims include Wachovia Mortgage, Deutsche Bank, Countrywide Home Loans and Indymac Bank. All have asked Mortgage Investment Lending Associates (MILA) to buy back mortgages that presumably did not meet their standards. Sapp founded the firm in 1984, eventually operating in 26 states. In 2005, it funded at least $4.5 billion in mortgages, according to The (Everett) Herald, which placed it among top 30 U.S. subprime lenders. Subprime loans are aimed at borrowers with impaired financial histories. Their high interest rates make them lucrative for lenders. Rather than writing loans itself, MILA matched funds from big lenders with the subprime clients of mortgage brokers. Its proprietary online loan-management system was designed to tell in minutes if those clients were good loan risks. Many mortgage lenders are saying they were not as qualified as their system led them to believe.
Although all of the details are not completely known about MILA's loan underwriting criteria, other mortgage companies have run into trouble for failing to accurately report prospective borrowers income and employment. This has led to a significant increase in foreclosures by homeowners who lacked the means to pay their mortgage payments, and in the process has taken down other mortgage lenders. One of the biggest was New Century Financial, which filed for Chapter 11 reorganization in April. "Wall Street has been saying for quite some time on all these subprime lenders that it wants to return the bad loans to the lenders who made them," said Deborah Bortner, director of consumer services for the Washington State Department of Financial Institutions. But she said it's premature to assume all the claims against MILA are valid. That will be sorted out during the bankruptcy proceeding, which will reorganize the firm's debt. Bortner said her department looked at MILA and concluded "they went out of business for the same reason as many, many other lenders have gone out of business: The market turned against them. We had no evidence of poor management or any of those things."