First NLC Financial Services - Subprime
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stories: yahoo.com, cnn.com, cnn.com, reuters.com
As stated by an Account Executive in an email this morning:
"First NLC has closed... Good Luck"
The front page of the First NLC web site at 11:13am (PST) states,
A Broker received confirmation from First NLC management it was true. We will post the official statement as soon as it becomes available. Stay tuned.
Okay... it's official. Here's an announcement from CNNmoney.com:
"FBR Group's mortgage origination subsidiary, will liquidate its assets as a result of the continued deterioration of the non-prime market. To effectuate its orderly liquidation, First NLC will file a voluntary petition for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. FNLC's senior secured lender supports the orderly wind-down of FNLC's business."
Update to Ailing - 2008-01-07: Late evening we received the following email:
"First NLC (The Lending Center) cut off computer access on Monday night at 7pm EST for all employees. There is no compensation plan in place for 2008. It looks like Tuesday is going to be the day they close up shop. Keep an eye on it early Tuesday, it is probably all over".
Post or view reaction in our Forum on this subject.
Original Ailing Post - 2007-12-17: Have we seen the last of First NLC? It's anybody's guess, but recent posters on Last NLC seem to be convinced, if not actually happy about it.
Layoffs and branch closures have been going on some time now, the most recent of which came to our attention when it was reported here that another 100 employees were let go and the Anaheim, CA office was also being consolidated to their East Coast headquarters. Calls to the offices still listed on CityTownInfo.com revealed only 2 locations still receiving calls: Anaheim, CA's answering system is still on, and the headquarters in Boca Raton, FL. The company's web site now shows just one location - Boca Raton. For those tracking the numbers, that represents 24 offices nationwide, and now, approximately 725 of 1,350 employees gone in the consolidation.
Concerns over the company's continued viability stem largely from losses reported in their parent company's 3rd quarter financial statements. On 10-25-07, Reuters reported that FBR Group (Friedman Billings Ramsey Group, Inc.) realized write-offs of $90 million associated with the sale of securitized loans, and an additional loss of $67 million from the sale of mortgage-backed securities. A company press release of the same date revealed the following additional losses:
FBR Group announced its plans to sell an 80% share in First NLC to a Sun Capital Partners affiliate on 7-26-07, as part of a recapitalization plan to enable the struggling sub-prime lender to continue operations and satisfy a negotiated settlement of this employee class action lawsuit which received preliminary court approval in late September. The transfer to Sun Capital is expected to be completed by 2007 year end.
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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.