Residential Mortgage Capital - Wholesale & Net Branch Operations

Effective today according to company President Tom Halbach "Residential Mortgage Capital will no longer be accepting Wholesale loan submissions or loan locks."

From Tom Halbach:

"As a leading lender of jumbo mortgage products, we find it necessary to suspend underwriting loans until the capital and credit markets return to business as usual and until the secondary markets resume their traditional function of buying loans from reputable independent mortgage banks like ours."

In a tip-of-the-hat to the Mortgage Lender Implode-O-Meter, he goes on to say "we are not "imploding" or permanently going out of business."

An ominous note to his official statement suggests to move loans elsewhere due to the "current position of our warehouse banks..."

Generally known as ResCap of San Rafael, CA, back in the heyday would fund upwards of $500 million per month. December's volume was closer to $8 million. From tips that have poured in, we understand about 50 people will lose their jobs after the pipeline is cleaned out.

According to our interview with CEO Jim Chapman, their Retail Division is ongoing and healthy, with 1.2 billion funded in 2007.

Should you have more information about this listing, please contact us. To read the official announcement in full with comments and opinions, visit our Forum by clicking here.

Note: Not to be confused with GMAC's unit Residential Capital, another lender which is on our Ailing/Watch List.