BSM Financial - Retail & Wholesale

Update - 2007-12-21: We received an email from Kurt Cummings -- President & CEO. He states no part of the company has been sold or transferred, and expects to "unwind the business and fulfill any outstanding obligations." Click here (.doc) to view the entire letter.

Update - 2007-12-19: To avoid confusion, we've moved this company up on the list. On September 7th of this year, BSM Wholesale Imploded. This listing is for BSM Parent Company AND Retail.

"BSM Financial (parent company) dba BankSource Mortgage is now moving all of it's operations, personell, servers, equipment, etc to American Home Key's office in Dallas Texas."

And from another email:

"The entire company has tanked, and has now been dissolved into a branch at American Home Key."

There's no way to put this information better than directly from our source (pardon the typos):

"...wanted to let you know that we were informed recently that BSM financial in Allen, TX is closing it's doors after a merge with Morgan Financial (MFI) 3 months ago became realized as unsuccessful this past week. Morgan Financial attempted to bail out BSM when they lot all of their warehouse lines this summer but could not keep up their end of the bargain. Most of the loan officers left on their own will due to frustrations with the merger and lack of funds to fund the loans.

The irony is that American Home Key purchased BrokerSource from BSM Financial when they closed it's doors in September. So basically everything that BSM once was is now under American Home Key's operations. They are closing the doors on the building in Allen, TX and closing down BSM financial all together. Who ever sticks around may be adopted by the kind people at American Home Key, if they're usefull and lucky I suppose."

Here's the opening portion of an email from Kurt Cummings -- President & CEO, December 11th:

"Gang, I wanted to take a minute and give you all a brief update. First, as you know, any transition never goes smoothly or as smooth as you hope but this coupled with the fact that we very much needed to move our servers proved quite daunting..."

Kurt Cummins

We attempted to contact Kurt, but there is no answer at the company's 800 number. More, direct from our Tips:

"At this point, I do not know specifically how many are out of a job. They have kept the layoffs very discrete and quiet. The company had lost 2/3rds of it's staff in the last 4 months due to layoffs and voluntary resignation from LO's to operations. I believe BSM used to do roughly 10 million in volume on average early this year, which then reduced to about a 2 million or less in the last few months since the warehouse line was closed by GMAC about 4 months ago.

I was an outside L.O, one of the few that were left when all of this madness took place in the last 3 months. Most of the top producers left since their loans were not funding on time or at all in Sept-Oct, leaving only people who had a stake in the company and people who were essential for operations."

And finally:

"For the past months, checks have been delayed and things have been very rocky getting logins to pull credit, or access automated underwriting, funding loans on time, etc. It's been a long time coming to say the least."

Looking up BSM on Allmortgagedetail.com shows 2005 fundings were over $200 million per month, which may have included Wholesale and Retail.

Original Implode - 2007-09-07: We have received word that BrokerSource (brokersource.biz), the wholesale division of BSM Financial (bsmfinancial.com) has ceased wholesale operations. Note: We have received no information regarding the operations of Bank Source Mortgage, the retail arm of BSM Financial. Per an apparent announcement sent around 7:00 p.m. EST:

We regret to inform you that BrokerSource has ceased wholesale operations effective Friday, September 7th, 2007. Anything that has not funded as of today, will not be funded. We apologize for any inconvenience. We appreciate your past business and look forward to working with you again in the future.

Earlier today, we received the following forwarded message apparently sent by a BrokerSource employee indicating that the cessation of wholesale operations "may be" imminent:

It appears that our firm may be added to the "Mortgage Lender IMPLODE-METER" and all indications are that we might be closing our doors at the end of business, today.

I want to thank each of you for your support during these past years ... it has been great working with mortgage professionals, albeit sometimes events ... make this profession truly challenging.

Indeed, the sender's guess was correct - on both accounts.

We are trying to assess BrokerSource's peak operations, including the number of employees affected and their peak monthly loan volume. If you can provide any of this information, please email us.