First Horizon Subprime, Equity Lending - Non-Prime Wholesale Lending Unit, Home Equity Lending

Update, Sept. 14th: Many folks forwarded the following to us, from a First Horizon AE, which announces the cessation of First Horizon's home equity lending activities:

It was announced today that First Horizon has decided to close it's Equity Lending division, due to changes in the market and a lack of buyers and liquidity in the secondary market. ALL NEW SUBMISSIONS & EXISTING LOANS IN THE PIPELINE MUST BE LOCKED BY FRIDAY THE 14TH! After Friday, September 14th, First Horizon will no longer be doing Stand Alone 2nd Mortgages.

On September 12th, First Horizon announced a cut of about 50% of its work force, or approximately 1,500 jobs.

Original post. 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.