Amstar Mortgage Corporation released a statement saying that it will look to exit the mortgage origination business, and that it has laid off substantially all of its staff at the company’s corporate headquarters. Here’s the statement, which references non-payment by several large lenders:
Amstar Mortgage Corporation a subsidiary of Amstar Financial Holdings, Inc. (Pink Sheets:AFLH) announces that is laying off most of the office staff at its corporate headquarters. This is in response to current market conditions in the industry. No mortgage company in the industry is doing well at this time. Many large lenders owe Amstar Mortgage Corporation substantial money, but most of these lenders either have or are going to seek bankruptcy protection in the near future. â€œWe had great staff here and we are sorry to let most of them go, but the current conditions require this decision,â€? stated Mr. Wayland. At this time Amstar is speaking with another mortgage company about managing Amstar branches, so service can be maintained with our offices and customers. Amstar Mortgage Corporation currently does over $1,000,000,000 in mortgages a year with approximately 116 branches and licensed in 31 states. Amstar Financial seeks to eventually divest itself of Amstar Mortgage Corporation, so it can concentrate on more profitable ventures. More news will be available as information and details are formalized.
No word yet on who the potential buyer might be – but doesn’t Countrywide come easily to mind here?