1st Choice Mortgage - Wholesale

Update - 2008-04-23: Cameron Financial Group, Inc. filed for Chapter 7 bankruptcy on 2008-02-19 as reported by The Tribune. According to the 2008-04-04 article, they had "28 million in debts" and there were "more than a dozen lawsuits pending, most of which listed Cameron Financial as the defendant, according to court records." Principal among those were lawsuits brought in May of 2007 by DB Structured Products, Inc. and DLJ Mortgage Capital, Inc. for loan repurchases totalling $8.18 million and $2.72 million, respectively. Cameron is also named as a defendent in a class action lawsuit filed 2007-11-08 for alleged fraud and predatory lending in association with the Tuscany at Monte Bella housing development in Salinas, CA. Consumer protection and watchdog group HomeOwners for Better Building reported on the case 2008-11-14.

Original Listing - 2007-12-18: 1st Choice Mortgage, a dba of Cameron Financial Group, Inc. of San Luis Opispo CA has decided to close. From an email that went out Monday, December 17th:

"It is with regret and sadness that we are forced to make the following announcement.

Due to the extraordinary events and circumstances that confront the mortgage industry we have made the decision to cease our business operations and dissolve the company."

The email sent by Shannon Faries states "The last day to fund loans in our pipeline will be Friday, December 21st."

We are told Wholesale started back in 1997, with peak volumes reaching $35 to $40 million per month. Their web site lists almost 40 Sales Managers and AE's, with reportedly 30 to 35 inside Operations staff. 1st Choice operated in 9 Western States including Hawaii, and appears to be hiring in CO and NM.

Some people believe this closure was due to the overall lack of business, while others have stated there are two buybacks suits in progress, although this is not confirmed.

We called the company and Mr. Faries was not available... Carla King who is handling the 'wind-down' would not comment to us.

If you have any additions or corrections to this Implosion, please email them to us immediately.