Southern Star Mortgage - Wholesale & Retail
2007-12-10
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stories: ny.us, newsday.com
Update - 2007-12-26: We received an email today announcing the Bankruptcy filing of Southern Star:
"US Dept of Justice Case No. 07-47023-dem
They filed for Chap. 11 on December 21, 2007 in US Bankruptcy Court for the Eastern District of New York."
We understand former AE's and employees are organizing, and a complaint is filed with the NY State Labor Board. Click here to participate in our Forum Topic on this subject.
To view the Creditor Matrix, click here.
Update - 2007-12-10: In an email from Denise Janetschek (COO) we learned Southern Star will close Retail Operations, in addition to Wholesale as we reported earlier:
"WITH A HEAVY HEART, WE REGRET TO INFORM ALL SSMC EMPLOYEES THAT WE HAVE NO CHOICE BUT TO SEIZE ALL ORIGINATION OPERATIONS EFFECTIVE TODAY DECEMBER 7, 2007. WE ARE CLOSING OUT THE LOANS IN THE PIPELINE.
ALL EMPLOYEES WILL BE PAID.
STAFFING LEVELS WILL BE MAINTAINED AT CORPORATE HEADQUARTERS TO FACILITATE THE WINDING DOWN OF THE OPERATION."
We understand over 100 branches are affected. A few employees found out over the weekend, but most got the news this Monday morning. If you have figures regarding peak volumes, and how many people have lost their jobs in this shutdown, please email us.
Original Article - 2007-11-02: Southern Star Mortgage Corporation of East Meadow, NY has told us today they have shut down their Wholesale FHA production unit. Southern Star General Manager Bruce Sharek says in a phone call "...this has no effect on our Retail production" and continues, "In fact we're hiring!"
We are waiting for an official statement from the company, and will post this update when it becomes available. According to their web site:
"Referrals from previous customers and local real estate professionals have always delivered the majority of the Company's production."
According to Southern Star, the layoffs to date account for 2 people. It's difficult to ascertain the peak volume of this unit. 2005 figures from HUD show over 1.6 billion in total loans, but this may be a mix of Wholesale and Retail.
If you can provide more information to complete this listing, please let us know!
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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.