Homewide Lending Corporation - Agency, Alt-A

Update 2008-05-27: We have received numerous emails that indicate Homewide wound up its remaining retail operation sometime in late April/early May and is no longer in business. One source wrote:

"I am a friend of the Owners of HOMEWIDE LENDING
I know for a fact that they CLOSED SHOP. why are they still on the Watch list?
They already IMPLODED a couple of weeks ago"

The web site is no longer accessible and phones ring unanswered even by voicemail. An investor who had been dealing with them as recently as 2008-05-09 told us email has also gone without response.

Update - 2008-03-12: In an email sent to us today, COO Rick F. Jiao said "Homewide Lending did not layoff everybody on March 7, 2008. This rumor is completely false. Homewide Lending still employs 20+ people in underwriting, secondary, docs, funding, and management."

He notes, "We are not funding any TPO business until a new warehouse line can be established. However, we are still funding loans with our current warehouse bank."

"This is just a temporary setback for the company in regards to the TPO side of the business. But fortunately for the company, our retail division can sustain the entire operations until a new warehouse facility can be established."

Original Post - 2008-03-11:Tipsters reported to us Homewide Lending Corp. in Pasadena, CA has let go most of its staff and is not funding loans. One person wrote "...per an ex-employee they laid off everybody on Friday, March 07 2008."

Another sent us this:

"Homewide Lending in Pasadena at the height funded $80-100 million per month mostly Alt-A and Option Arms. Laid off operations staff last week and have not posted pricing in about 1 week. Primarily a wholesale lending shop although had a small retail division. Have heard first hand from former staff members that warehouse lines have been shut down for almost two weeks. Of course they have not notified the brokers about their pipelines and do not return phone calls. Tried to call, but can't get anyone to answer in regards to a file in process."

According to their web site, Homewide offered Prime, Alt-A and Jumbo products and are licensed in six states (AZ, CA, FL, HI, NM & NV). There are 16 AEs listed, but when we attempted to call one we got a recording "the mailbox you are trying to reach..." Another's voicemail greeting hadn't been updated since January 31st.

We did speak with an insider (who will remain anonymous) that told us they lost their warehouse lines (including CitiGroup's First Collateral Svcs) and are still trying to operate with a skeleton crew. The informant mentioned they were working with Gateway Bank to obtain another warehouse line, and said most everyone walked out last week because of the funding problems.

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