Ace Mortgage Funding, LLC - Retail, Net Branch Operation
Update - 2008-11-13: We'd heard it was coming, and now confirmed: Ace Mortgage Funding LLC filed for Chapter 7 Bankruptcy on 2008-11-05, claiming assets and liabilites each between $1 and $10 million with creditors numbering between 1,000 to 5,000. While the list of 20 largest creditors as of initial filing was mostly comprised of marketing (leads) firms, credit report service providers and lease holders with claims ranging from $163 down to $28 thousand dollars, the complete list filed two days later was 360 pages long. Income data reported reflects a loss of $30.5 million for 2007 per audited financials, and $11.4 million in the red for 2008. View all sections of the complete list (pdf) by selecting from the following links: Part 1 (100pgs), Part 2 (100pgs), Part 3 (100pgs), and Part 4 (60pgs).
Ace Mortgage Funding, LLC shut down today, marking the end of a drawn-out process of layoffs and branch closures we've been following since June. Just a month ago, we were told AMF was down to about 400 LO's from previous highs of 800-900. Branch offices numbered 28 at peak, and many jobs with base pay had been eliminated over the past 12 months. "Close to 100 at corporate in Indianapolis, and 3 per branch" had been let go our source said. Another source we spoke with said there were probably between 25 and 30 operations staff remaining at the headquarters. The web site listed 15 offices remaining in June, each having anywhere from 30 to 40 LO's according to reports we've received.
One tipster told us Ace Mortgage Funding had "difficulties making transition from subprime 'superbroker' to FHA based 'competitive internet leads'." Previous yearly volume of about $3 billion was said to currently be down by half as much. One AE told us "They were funding about $100 – 125 Million per month from their branch operations."
Part and parcel of the company's demise, aside from the general market's downturn, may have been to do with the settlement of a lawsuit filed by former employees for unpaid overtime. According to one tipster:
Actual damages awarded were $4 million plus over $1.2 million in attorney fees. The case had been dragging on since July of 2005. There are two other civil actions pending against Ace Mortgage Funding, and several more that closed in recent months according to public records.
You must be a struggling competitor or an old employee that couldnt hack it.. It might be useful for you to think of all of the people who lost thier jobs that put 110% into that company. Grow up. I left Ace a year ago, but I hold no resentment for the company that gave me my wheels in ths business. Good luck to all of you!Uh...yeah...ok. You take your training wheels and little helmet and scoot on. Ovbiously your head was/is either in the sand or somewhere darker and a little South. Another poster put it quite succinctly...."Glen Gary Glen Ross"...I just liked the movie, "Boiler Room" more and it fits Ace to the tee. You left? Or were asked to leave? I'm at the same place I've been for a while rookie. In my own shop closing loans. Permalink
formeraceace at 12:58 2008-10-26 said:It was sad to see Ace go, not a bad place to be - just not in this market. The real scary thing is the 2 senior people already have a federally chartered bank ready to start-up in the next week from the ashes of Ace. Unbelieveable.... To all those displaced, if you can get through this difficult time in the business, I truly believe the other side of the rainbow is filled with sunshine and even gold 8) - if you got the guts to stay in it... A good portion of the business will always be there - even at 75% of the volume with 50% less people to compete with - I will absolultely take those odds.... Permalink
EX_ACE_Processor at 17:51 2008-10-26 said:It's really sad to see them go... Things were so great in 04 to 07... 07 is when we started to feel some of the troubles.. We use to process at least 100 loan between 2 or 3 processors... I'm just glad that I listened to my husband and left right before they decided to let their processors go... I feel for the ones that I still know that were working for ACE.. Hope everyone is well... God Bless!!! Rich Hall and Paul are very smart men and they will return... Permalink
stinkypinky at 12:38 2008-10-27 said:Ace in theory and a better market would thrive. When they sprouted up in Illinois presentation was all visual. Impressive really. Not so fortunate was the choice of actually using mentally dented infants run the show. I mean drunken stoopers at work? Emblematic of the driving force behind it really. There should be no surprise that Ace is suffering law suits and closing down. Apes at the helm leads to a zoo like atmosphere. How do you run down a mortgage office with what looked like no limit on spending to draw business? Ace has turned into a valuable case study for how not to run not just a mortgagae office really any office. Permalink
BrokersAreJokers at 13:14 2008-10-27 said:
It was sad to see Ace go, not a bad place to be - just not in this market. The real scary thing is the 2 senior people already have a federally chartered bank ready to start-up in the next week from the ashes of Ace. Unbelieveable.... To all those displaced, if you can get through this difficult time in the business, I truly believe the other side of the rainbow is filled with sunshine and even gold 8) - if you got the guts to stay in it... A good portion of the business will always be there - even at 75% of the volume with 50% less people to compete with - I will absolultely take those odds....Yes, at American Bank in DC/MD. Why is that a scary thing though? I am simply curious. 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.