1st Republic Mortgage Bankers - Retail

The tip that came in read, "1st Republic Mortgage Bankers, Inc. was shut down on Thursday January 15, 2009. Apparently misappropriation of funds." The phones now ring unanswered.

On 2009-01-14, FirstTrust Bank of Coshocton, PA filed suit against 1st Republic Mortgage Bankers demanding a default judgment for $5,495,977.00 due and outstanding under a Warehouse Agreement along with interest, costs and attorney's fees. As alleged in FirstTrust's complaint, 1st Republic Mortgage Bankers defaulted on the terms of the agreement by "paying to third parties more than $2,000,000.00 in proceeds of collateral pledged" and "hypothecating to third parties collateral pledged." The third parties were not identified, and no individuals were named in the complaint.

1st Republic Mortgage Bankers was readily recognizable from the many commercials they aired on TV, and were licensed to do business in twelve states in the midwest and east coast. Their license in Connecticut was suspended pending revocation on 2008-10-16. The company averaged $18.5 million in monthly originations for 2007, down from over $21.6 million per month in 2006. Manta.com reports an estimated 50 employees at the headquarters in Floral Park, NY. The company's web site listed branch offices in Rutherford, NJ and King of Prussia, PA.

This story is still unfolding, and we will continue to update it as additional information becomes available. Please don't hesitate to send us an email if you can provide more details.