Mortgage Lenders Network USA stops funding new loans

[wicket]

LINK

Mortgage Lenders Network USA, a major issuer of loans to people with blemished credit histories, says it has stopped funding loans and accepting applications for new loans.

MLN, which bills itself as one of the country's top subprime mortgage lenders, also is "currently exploring strategic alternatives" for its wholesale business lines, according to telephone recordings at at least two of its wholesale lending offices. MLN, based in Middletown, Conn., says its goal last year was to produce more than $12.1 billion in loans, 80 percent of which would be in the subprime space. The company has four regional wholesale lending offices.

MLN's outside public relations representatives referred inquiries to company executives. MLN officials, including the chief executive and general counsel, didn't respond to phone calls or e-mails. On Dec. 8, the company posted a note on its Web site saying it continued to operate normally.

MLN also has a big mortgage servicing arm, with a portfolio of more than $14 billion and over 100,000 accounts, according to the company's Web site. The status of the servicing business wasn't clear.

The decision by MLN to stop funding new loans, and to consider alternatives for its wholesale business, is the latest sign of an ongoing shakeout in the subprime mortgage industry. Late last year, for example, two subprime lenders, including Ownit Mortgage Solutions, shut down citing "the current unfavorable conditions of the mortgage industry."

[itsmesgd]

1. what's that I see over the horizon?

Oh yes, it's a recession/ depression.
I wonder what the dollar v. euro will open at/close at tomorrow.

[Double T]

2. Don't worry, the economy is doing great.............just ask bush.........

and his economic propaganda network cnbc. bushco will be telling everyone how great things are the day before the crash.

[Phredicles]

3. And the NYTimes etc., etc., will be wondering grumpily why people

aren't happier with the wonderful economy... :eyes: :eyes:

[wicket]

4. We've turned the corner!

n/t

[Double T]

5. .......and are in a tailspin.

[A HERETIC I AM]

6. Is it not possible that they took this action in order to stay solvent?

Isnt it just a slight possibility that the management of MLN understand that the business they are in - lending money to people WITH POOR CREDIT IN ORDER FOR THEM TO BUY HOMES is affected by the housing slump in general and by simply not writing more loans they will keep themselves from financial ruin? Is that not at all a possibility? (I ask you posters above)

The mere fact that a lender whose main line of business is high risk loans decides to not take on any more risk is no more an indication of a coming depression than the lack of milk in my fridge means all the cows are dead.

Jesus fricking christ...