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LoanCity - Alt A, A , Subprime Lender

2007-03-20

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stories: loancity.com, autodogmatic.com, brokeroutpost.com

Word started trickling in around mid-day today that LoanCity was shutting its doors:

It is with great regret and sadness that we announce the closing of LoanCity. Although the mortgage market continues to be a very challenging environment and we have taken measures to redirect our business, including our recent staff reductions and branch consolidations, we cannot meet the capital constraints needed to continue. We are doing this in order to make sure, at minimum, the Company is able to make payroll and compensate staff for the work that has been done, and not file bankruptcy.

We will fund loans until close of business, today, Tuesday, March 20.

Their website has a message that confirms that today is the last day they will be doing loans. LoanCity did up to $10 billion a year in A and Alt A paper. As one informant noted, "This has officially leaked into other markets than sub-prime."

Update: MortgageDaily.com reports ($) that LoanCity's investors were Bank of America, Etrade Group, Inc., and Morgan Stanley Dean Witter Equity Funding, Inc.

Update 2: Bloomberg reports, "LoanCity made about $6 billion in mortgages last year, went out of business on March 20."

Update, May 5th 2007: LoanCity's web site now contains just the following shutdown notice:

LoanCity is closed for business.
To our customers, our staff and our business partners - we sincerely thank you.


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Comments:

WillRepForFood at 17:04 2008-05-28 said:
Stupid SOB's shut down while I was out at new Account Executive training for them in California and stuck us with a hotel bill and having to change our tickets to fly home.

I have never received reimbersement from them.

If anyone knows the whereabouts of the old president of the company, I would be interested in knowing where he is. When I find him, I intend to go get my money. Permalink

processorchick at 01:20 2008-06-24 said:
:D I'll tell u a city and state, but not on public forum. Used 2 work there too. Permalink
Dollar_guy at 01:34 2008-06-24 said:
:D I'll tell u a city and state, but not on public forum. Used 2 work there too.
You can PM him, or e-mail him... Jeremy is cool..... Permalink

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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.