Amstar Mortgage Corp - Subprime

We have received tips that Amstar Mortgage Corp is set to "quit mortgage lending" per this Yahoo! release:

... Amstar Financial Holdings Inc said it will shut down its Amstar Mortgage Corp. unit around Dec. 15, citing difficult market conditions, and turn over control of its 118-branch network to The Money Store of Florham Park, New Jersey. It plans to honor loan commitments through that date.

...

Houston-based Amstar said on Wednesday its decision to quit mortgage lending resulted mainly from market conditions, the cost to operate branches and defend lawsuits, and "seemingly stable lenders unable or unwilling to honor contract commitments."

As part of the shutdown, Amstar said it plans to cease public reporting of its financial statements.

Spokesman Michael Wayland said Amstar made about $1.5 billion of mortgage loans in the year ended Sept. 30, 2006, with about two-thirds eligible for purchase and guarantee by mortgage companies Fannie Mae and Freddie Mac.

He said Amstar employs 300 to 400 people, down from 800 in February. Amstar said its branches are in 31 U.S. states and Washington, D.C.

Note that The Money Store is set to take control of Amstar. We are unsure at this time what such a change of control will mean for the funding operations of Amstar.

Original Ailing/Watch List posting from 2007-08-17

Amstar has put out a press release announcing major staff cutbacks, namely, most of its main corporate office:

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. "We had great staff here and we are sorry to let most of them go, but the current conditions require this decision,"" 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.

We're unclear what business Amstar is still doing. If you have any more information on Amstar's situation, please let us know.