Current news for this company:
Security Atlantic Mortgage Co. - Wholesale - FHA
Two weeks after a press conference in which HUD/OIG named it among 15 lenders issued subpoenas seeking info on defaulted loans, Security Atlantic Mortgage Co., Inc. has informed brokers it will stop taking new applications. The announcement posted on their web site (view cached) reads in part:
The Edison, NJ based company also published an official response (view cached) to the press conference, stating that it along with the other lenders mentioned had been "inadvertently stigmatized" by the Agency:
"HUD potentially did a tremendous disservice to the fifteen recipients of the subpoenas by releasing their names to the public. This is especially true given the small sampling size, the lenders' present good standing with HUD, and Donohue's admission that HUD/OIG is not accusing them of anything and has no evidence of any wrongdoing."
While the announced suspension of business is reported as "temporary," Security Atlantic goes on in the notice to indicate it plans to "assess the continued viability" of its business model. In the meantime, the company is transferring loans to Real Estate Mortgage Network (REMN), another lender with which Security Atlantic says it has "tremendous synergies." Loans in states where Real Estate Mortgage Network is not licensed were given a deadline of 2010-02-26 to close with Security Atlantic. Employees are also making the transfer to REMN's newly opened wholesale operations center in Edison, NJ according to the announcement:
"REMN is actively recruiting existing SA operational staff, including underwriters and closers, to fill positions in their new Operations Center. Many SA Account Executives have already accepted new positions at REMN."
Security Atlantic Mortgage Co. operated in the State of New York as Security American Mortgage. Documents posted on the web site list 41 Account Executives and 21 Underwriters. Manta.com reports a total of 59 employees. Production volume in 2008 averaged just over $128 million per month.
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mortgagewoes at 16:12 2010-01-27 said:this company was awesome. started by great mortgage people and run just perfect. yeah, they took some garbage, but never did anything against HUD's guidelines. HUD states they have no min fico - so how can you repremand someone for writing loans according to HUD's guidelines. And to then have a press conference and give bad press 2 15 companies with high default, given a small sampling - this is BS. I have never worked for this company, but know many people who do. This is a tragedy - brought on by FHA and HUD. Permalink
1 More Thing at 16:36 2010-01-27 said:One day I managed to "bump into" one of these reports that indicate the levels of defaults by lender on FHA loans. The numbers are astonishing. I looked at the numbers broken down by 30 day default, 60 day default, 90 day default. You could sort the data of a lender by zip code and drill down to every demographic possible about the borrower and the lender that originated and processed the loan. They have data on every FHA loan ever done by a lender and the payment history and default rates. The data base that I saw was astonishing. Although I was not privy to seeing the data that caused the "PRESS CONFERENCE" -- I can tell you after seeing the data opened my eyes. Yes, there are 15 companies - but if they were the worst offenders - then they REALLY had some serious default rates. I hate to see people lose their jobs- it looks like they are really cracking down. Permalink
mortgagewoes at 16:41 2010-01-27 said:how crazy is it that the "entire" company just moves on to another company and another platform. how many times are we going to see this happen before it just all comes crumbling down? i mean - did they even have to move offices? haha - or is it like boiler room and they move to the building next store? Permalink
1 More Thing at 03:02 2010-01-28 said:Yep. Probably in a business complex - building 10 instead of building 2. Permalink
ColoniaGirl at 11:19 2010-01-29 said:Let me get this straight. Powerful politicians give AIG and Goldman Sachs billions because they're too big to fail. But if you're a small guy following the HUD rules and helping poor people buy homes, low level government bureaucrats can destroy your reputation and your business by serving a subpoena and holding a press conference -- even when they have NO EVIDENCE that you've done anything wrong. What the government is doing to SA is downright unAmercan. Permalink
mortgagewoes at 13:49 2010-01-29 said:coloniagirl - sound like you work for them and are from that area. howare things over there? moving everything across the hall to a new company? I agree with you somewhat. They are a little guy, doing what HUD allows - but we have to agree that they took the business no one else did - right? everyone knows that. that is why their ysp's were so low, b/c they knew they could! Permalink
njreattorney at 20:14 2010-01-29 said:I am an attorney with a real estate practice close to Security Atlantic's main office in Edison. I have many clients who have obtained loans from SA and I have always found the company to be well-organized, reliable and more responsive than most other mortgage lenders I've dealt with. I have also met several of the company's executives and found them to be honest, hard-working professionals. Seems like the fed. govt is always looking for a scapegoat! Reminds me a bit of the Salem Witch Trials!! 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.