ComUnity Lending - Wholesale Subprime, Alt-A
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More than a few people saw this coming. We sent out the following in our Premium Newsletter a few days ago:
"Here's another update to ComUnity. The company has basically imploded. There is virtually no one left but the CEO and 4-5 others. If you search google, you will see the building for ComUnity has been sold and not by the CEO's choice. Rumors speculate that ComUnity cannot recover from the $19M in impaired loans and is not going to be able to 'come back'. It's very sad to learn this as it was a good company to work for. Word also speaks of a new venture the CEO is doing."
"Rumor for the massive consolidation was that a 19M security the company was trying to do with a Wall Street firm fell throw at the last minute. Those 19M were loans the company could not sell."
And just in:
"I was just informed that the Liquidators were in their office this week and that their Managers and loan officers lost everything. One former Mgr that I know said he lost over $65,000."
"I don't think they have funded any loans in the last month or so. I just also learned the company will officially close down in the upcoming days. It is dead."
And finally, in an announcement from the company's web site:
Some of the pressure to seek what certainly appears to be Bankruptcy protection may be coming from former employee (Mai) Christina Pham, et al. We received word the amount of this claim may be as high as $1 million in what appears from this court action to be wage or benefits related.
Previously from the Ailing List
Update 2007-09-25: We have received additional details from a source regarding ComUnity that we thought might be beneficial to readers. Per a source:
Note: ComUnity is not to be confused with St Petersburg, Florida-based Community Lending Group.
(Back-add - today is 2007-09-20) We have received word that ComUnity Lending, a wholesale lender, (comunitylending.com) has throttled back operations per an announcement they made both via email and through their web site in early September.
One source indicated to us that around the end of August, ComUnity went from around 70 employees in their corporate office to roughly half at 35:
If you can provide any further information, clarifications or corrections regarding ComUnity's continued operations, please let us know.
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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.