Navigation


Lijit Search
Be notified of
page updates
it's private
powered by
ChangeDetection

See companies still doing business in this state.

Current news for this company:


Northeast Mortgage Corp. - Retail - Agency, FHA/VA

2009-10-09

Comment on this article | Subscribe by email!

stories: rep-am.com

Update - 2010-04-09: Faced with "more than 200 counts of forgery" Paula Borsari, Northeast Mortgage Corp.'s former Controller, has pled guilty to a single count of conspiracy to commit first-degree larceny. As reported in the Republican-American, she will pay restitution of $120,000 and donate $30,000 to charities. Judge Richard Damiani is reported as saying he would "likely give Borsari a suspended jail term followed by probation," due to jail overcrowding.

Part of Paula Borsari's husband Ray Borsari's plea deal includes entrance into an "accelerated rehabilitation program" and $15,000 to be donated to childrens' medical research. Damiani told him, "To my knowledge, your wife was the prime mover and you were the silent partner."

According to the article, "about $270,000" had been stolen from the company. More than 200 checks were found to have been deposited into the couple's bank accounts. Sentencing is scheduled for 2010-05-03.

Original Listing - 2009-10-09: In a memo to employees dated 2009-10-06, CEO and President Brian Rogerson announced the Southbury, CT company had surrendered its licenses and would no longer be originating mortgages. In that correspondence lay hints of a number of problems Northeast Mortgage Corporation had been facing:

"Effective immediately NEMC will no longer originate mortgage loans. The licenses for both AZ and CT have been voluntarily surrendered allowing them to be reinstated should a series of events occur that would make reinstatement the right choice. Northeast Mortgage Corporation will exist as an entity but will not continue to generate a revenue stream once the existing pipeline of loans are closed and funded. The entity will continue on without licenses and I will remain the President and majority shareholder. The entity will continue the process of suing multiple parties in an attempt to make all shareholders whole through litigation and possible settlements. In addition the time in which the Corporation is "shelved" will be used to "cleanse" the entity once and for all of all lawsuits filed against it, all tax liabilities and all existing liability to investors to whom we have sold loans that they deem NEMC to have liability on (known and unknown issues). NEMC will not operate as a Mortgage Lender/Banker until the day it has been cleansed of all issues and its balance sheet is properly positioned to thrive again as a mortgage lender."

Loss of a warehouse line-of-credit, alledged improprieties by a former Controller, a substantial IRS "obligation" and a dispute with Bank of America over $475,000 are referenced in the memo. Northeast Mortgage Corporation was hit with a 2009-08-05 lawsuit filed by the Bankruptcy Trustee for New Century demanding $226,420.72 in loan repurchases. Former Controller Paula Borsari and her husband Ray Borsari Jr. who was a telemarketing manager for the company were arrested on charges they embezzled upwards of $250,000 between 2000 and 2006 according to the Boston Globe. Roberson claims the warehouse line-of-credit could not be reinstated due to one shareholder's objection to offer a personal guaranty, and that ultimately led to their decision to cease operations.

There are any number of web sites for the various offices of Northeast Mortgage Corporation, but the primary site now sports the "colors" and announces that "Brian P. Rogerson and his TEAM have joined The Lending Company." One source we spoke with indicated the company had over 100 employees at some point, and CitiTownInfo showed offices in AZ, CT, FL, MA, PA, and WA. Volume had been steadily declining since originations reached a peak monthly average of $32.5 million in 2003.

Contact us if you can provide additional details or post your comments below.


Bookmark and Share


Comments:

MrsMarshall at 13:44 2009-11-19 said:
Brian's famous quote in the office was, "Countrywide will buy this loan or I will FORCE them to buy it!" How'd that work out for you Mr. Rogerson? Brian will believe himself to be a great company owner and a victim until the bitter end:

In October of 1996 when we started this company I had never imagined writing this type of email. This company has endured many market conditions and many people coming and going but one constant remained regardless…..we were just plain better at doing this than the companies we competed against. Since the discovery of the actions of our previous Controller in 2006 the company has been in a constant state of survival vs. growth. While we survived the short term economic effects of her actions the long term effects have finally caught up to us. The IRS obligation although substantially reduced combined with the actions of Bank of America (in which they failed to pay NEMC over $475,000 earned) plus HUD’s increased net worth requirements based on our funding volume in 2008 led to the warehouse lenders decision to suspend our warehouse line. Obviously without a warehouse line we cannot operate as a BANKER which as we have witnessed for the past 3 + months is the only method of operation we truly understand and can thrive under. About a month ago we cleared all the obstacles required to reinstate our warehouse line but one. The warehouse lender wanted the personal guarantees of all key players……we were able to get all but one shareholder to agree. Failure to obtain that guarantee basically solidified for now that NEMC cannot continue to operate. Effective immediately NEMC will no longer originate mortgage loans. The licenses for both AZ and CT have been voluntarily surrendered allowing them to be reinstated should a series of events occur that would make reinstatement the right choice. Northeast Mortgage Corporation will exist as an entity but will not continue to generate a revenue stream once the existing pipeline of loans are closed and funded. The entity will continue on without licenses and I will remain the President and majority shareholder. The entity will continue the process of suing multiple parties in an attempt to make all shareholders whole through litigation and possible settlements. In addition the time in which the Corporation is “shelved” will be used to “cleanse” the entity once and for all of all lawsuits filed against it, all tax liabilities and all existing liability to investors to whom we have sold loans that they deem NEMC to have liability on (known and unknown issues). NEMC will not operate as a Mortgage Lender/Banker until the day it has been cleansed of all issues and its balance sheet is properly positioned to thrive again as a mortgage lender. I have accepted a position to expand the business of an established local Mortgage Banking firm licensed in over 30 States including both CT and AZ (which are all I really care about) currently funding approximately 200 loans per month in AZ and CA only. Like NEMC they only understand how to bank as they had less than 10 brokered loans close in the month of September. The loans are processed and underwritten in house and the products they underwrite and fund include FHA, 203K, VA, USDA, Conforming and what is left of Jumbo financing. I will manage this operation from their corporate headquarters where all their support and AZ sales staff work in AZ. Sean will report to me and run the branch in CT which will represent this companies only brick and mortar outside of the State of Arizona. If you are interested in pursuing options with us moving forward see either Sean or myself for a hire package. Thank you for all your support over the years and should you chose a different path I wish you luck in your endeavors. Permalink

add a comment | go to forum thread

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.