Meridias Capital - Alt-A

Notice, August 17, 2007: Meridias management has contacted us to notify us that the closure only applies to their wholesale functions, and they are continuing to broker loans. They also add that they plan to begin banking agency product as soon as it makes sense to do so. We are keeping the company here under "watch" status because of the extent of the downsizing. Check back at this entry for clarifications and of course check with the company directly for the latest and most accurate.

(Back add: today is 2007-08-10) We began hearing about Meridias in late July. Estimates have put their total employees nationwide at peak at around 800 and their annual loan volume either $2 or 3 billion (or somewhere in between). Just recently an informant provided the following details on what has happened at Meridias:

I interviewed an Underwriter from Meridias yesterday. She said that the Operations Center in Salt Lake City laid off 80+ people including their head Underwriter, head Operations person. All of their underwriters got laid off. In fact their resumes are all in circulation now...so that appears to be correct. ... Meridias did over 2 Billion last year according to their website so they are not inconsequential. Meridias headquarters in in Vegas, their ops piece was in Salt Lake City. They had branches in San Diego and Scottsdale and a boat load of LOs around.

... They are still in existence, but they are now a mortgage broker! They laid off their entire Underwriting department, closers and funders (but called back a few to finish things out). Meridias is based in Vegas and their ops center was in Salt Lake City.

Another informant confirms:

Check out the scoop on Meridias Capital based in Las Vegas & Salt Lake City. Heard they let go of 500 people late last week. Originated about $2.5 billion last year in mostly Alt-A type product in 48 or so states.