(Back-add: today is 2007-08-29) Many wrote in to note that California-headquartered Alt-A and subprime lender Lexington Lending had announced they had ceased taking new submissions per the following notice:
Effective Friday, August 13, 2007, for all new submissions.
Due to the vast and unstable changes in the current market place, Lexington Lending Wholesale will cease taking new submissions at this time.
As the Market begins to stabilize we are confident that we will be able to not only maintain consistency with our current product line, but add new break thru products as well.
As always we appreciate your support and look forward to continuing to work with you in the near future.
This change is in effort to maintain our ability to provide a wide and diverse product line, yet maximize the ability to choose the right
product to fit every loan.
I've been told by sources that Lexington Lending laid off roughly 300 employees as a result of the news, though it is unknown how many employees have been retained.
That same source told me that the company does (or did) about $100 million in monthly funding, which is pretty substantial in the current lending environment
Based on ratesheets I found on their website, it looks like they did quite a few high-risk loans including "100% option-arm", "No Doc loans from 580 FICO", "0% Option Arms (3 Months NO Payment)", and "No Doc Loans to 3.5 MIL".
Scary part is those are the programs in their Alt-A section. I won't even get into the subprime loans.
Lexington Lending is headquartered in Orange County, California and also has an office in Las Vegas, Nevada.
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Important: This company is on our list of lending operations that have "imploded". 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.