Coldstream Financial Svcs. - Retail

Sources tell us Coldstream Financial Services, Inc., a large broker in SW Ohio, has closed their doors after a long struggle to stay afloat. The Business Courier of Cincinnati (subscription) reported the company had 96 employees and recorded $7.2 million in revenue for 2006. We don't know what this dollar figure represents.

An article in Mortgage Daily (subscription) reported 2005 volume at $246 million - about $20.5 million per month. It attributed the firm's demise to their focus on subprime. Unfortunately Coldstream was not approved to do FHA loans, and according to one broker interviewed, "as much as 90 percent of their originations were being funded through subprime lender First Franklin Financial Corp." Doing business in OH, KY and IN, it appears the company elected to simply let its licensing expire. From an excerpt:

"Coldstream's Indiana license was revoked on Aug. 5 after it failed to meet a July 5 deadline for the state's requirement to register the principal manager of its mortgage broker business, an official in the Indiana Secretary of State's securities division told MortgageDaily.com.

And Coldstream failed to renew its Ohio license, which was then canceled on Oct. 3, a state Division of Financial Institutions spokesman said. The renewal deadline, he said, was April 30, with a one-month grace period."

Coldstream's Kentucky license would have expired on December 31, 2008.

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