First Horizon (Subprime) - Non-Prime Wholesale Lending Unit
2007-04-11
stories: mobilemortgagenews.com, reuters.com
Many have written in with news that this subsidiary (First Connect) of First Horizon National has thrown in the towel. Here is an excerpt from a typical AE letter that went out to brokers:
Effective immediately, First Horizon WHOLESALE Non-Prime is no longer in business. Due to the current conditions in the sub-prime market, we do not have the resources needed to lend in a non-prime market. For loans already in process, we will do everything we can to get them closed for you by end of April. Please keep in mind, last day for refinances to close is April 25th. Anything that does not FUNDin April will not be closed.
Please note: There are NO changes with the Conforming or Equity Lending divisions of First Horizon. Please feel free to continue to send loans to your conforming and HELOC Account Executives as these changes do not effect them in any way.
This link has more on First Horizon in general; though not much about the shuttered division.
More details on impact if and when we get them.
Update, April 12, 2am: We hear that First Horizon is still doing non-prime retail.
Update, April 16: Just noticed MortgageDaily has confirmed this.
Update, April 17: We are hearing that First Connect is the name of First Horizon's sub-prime subsidiary and that it is the main portion which shut down.
Important: This company is on our list of lending operations that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.