Another Subprime Mortgage Lender Exits
Housing Wire has learned that Funding America, a Houston, Tex.-based subprime wholesaler, has shut down. A notice posted on the company's website Thursday said the company is discontinuing operations due to current market conditions. The company was led by former Aegis Mortgage president Neil Notkin, who founded the company along with business partner Mallory Hill and began funding loans in 2005. Funding America had a close partnership with Ocwen Financial Corporation, who provided due diligence and loan processing services for the operation. The company is the latest in a string of subprime lenders to close up operations this month. (Last week, HW reported that Maryland-based Bay Capital shut its doors amid financial insolvency.) In addition to its Houston headquarters, Funding America also hosted operations centers in Dallas, TX; Baton Rouge, LA; Jacksonville, FL; and Orange County, CA. The company said all existing loans in its pipeline will be funding through its Houston office until its pending loan pipeline is clear. Funding America employed more than 100 people nationwide, according to sources, although the fate of current staff was not known at the time HW went to press. No information regarding the size of the company's operation were made available. Calls to the company for comment were not returned.