Diversified Mortgage, Inc. - Alt-A, Subprime

We received several emails about DM Lending (Diversified Mortgage, Inc.) in Clearwater, FL shutting down wholesale. It sounds like retail is gone, too, as the web site for Diversified Mortgage is shut down.

One former AE wrote: "I believe DM Lending out of Clearwater, Fl has closed up! I have tried for days to call them, with a constant busy signal even at midnight. ...All the other outside AE's telephone numbers go to a voice mail not giving the name of there company. Returned emails." This indeed is the case. Other former employees we were able to reach told us most if not all of the remaining staff and AE's were let go a couple of weeks ago.

Our sources tell us DMI had around 50 employees at one time, about half of them in operations. Monthly volume for the wholesale team was around $12 million, with another $10 million or so coming from their retail side. In the middle of (the end of) the boom, they hit peak volume of about $25 million in October 2006. A former manager told us there were "a lot of buybacks."

DM Lending, headquartered in Clearwater, FL, had a network of 10 inside and outside AE's (as reported on their web site). They did business primarily in FL, but a former employee told us they were licensed in 12 states and had satellites in WV and GA at some point on the wholesale side. Retail was in FL, TN, NC and VA. Licensing info was not available on their web site. DM Lending is registered as a fictitious name for Diversified Mortgage, Inc. on FL's Division of Corporations web site.

Recent volume, according to one source, was down to around $8 million for both business channels, and there were probably no more than 10-12 employees left. If you can supply more specific details, email us by clicking here.