After a week of intensifying speculation, and as reported earlier, MLN announced late yesterday afternoon that it has discontinued its wholesale mortgage operations. The mortgage lender said it will continue to operate its retail and servicing platforms. While MLN's servicing platform remains strong, according to company officials, the economics of the wholesale mortgage market have deteriorated dramatically over the past two months industry-wide.
"Until we see credit quality and margins return to acceptable levels we have determined that MLN needs to pause from wholesale broker originations," said MLN President CEO Mitchell Heffernan. MLN is the third largest non-prime, sub-servicer in the country with a current servicing portfolio of $17.8 billion and the company is currently involved in strategic negotiations with several Wall Street firms relative to MLN's wholesale origination platform.