Alternative Financing Corp (AFC) Wholesale - Wholesale, Retail Alt-A, Subprime

We have received word that Alternative Financing Corp has suspended their wholesale operations. One tipster supplied the following:

I'm a former employee of Alternative Financing Corp (AFC) based in Santa Clara, CA. (www.afchomeloans.com) They laid off 60% of their staff in June and I was just informed by former employee's that they stopped all wholesale business yesterday August 2nd. The wholesale channel account for about 95% of their business. AFC focused on Alt-A and Subprime loans.

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At peak production approximately a year ago AFC was closing approximately $20 Million/month with about 40 employees in Northern and Southern California. Of the $20 Million about $12 Million was Alt-A (including option arms), $5 Million in piggyback 2nd's, and $3 Million in Subprime. AFC was predominately all subprime until the beginning of 2006 when it switched to more of an Alt-A product line.

This tip has been confirmed by AFC's website (afchomeloans.com) which posted the following notice:

Due to market conditions Alternative Financing Corp. will be discontinuing its wholesale operation effective August 2, 2007 and will focus on its retail business channel. We will honor all wholesale doc'd loans through their expiration date.

Thank you for your patience while we update our website.

Retail appears to still be operating.