Liberty American Mortgage - Wholesale & Retail

Update - 11-14-07: Our previous discussions with Liberty American indicated they would continue Retail operations. Based upon recent emails, this appears not to be true.

"Liberty American Mortgage in Roseville CA has closed its doors...."

And finally, from one very informed individual:

"I'm sad to report that after a Friday meeting 11/9/2007 the company President Frank Sousa informed staff members that he was very appreciative of there loyalty, but it was time to close the doors. He then went on to say that he was going to work for the reverse mortgage company they were partnering with and that any LO who wanted to come was welcome.

From my inside sources the closure comes on the heals of a pending $3,000,000 lawsuit by Bill Templeton the once CEO of Liberty. He left abruptly in June reportedly due to contract issues. He was in negotiations with Bill Jacuzzi (Century 21) that eventually fell through."

We are told that the final count after several layoffs is about 30 employees effected by the closure.

Update - 11/12/07: We received the following email today:

"Per conversations with the staff: this company is no longer in business as of Friday, November 9, 2007."

Original Post - 11/01/07:

Liberty American Mortgage Corporation, Roseville CA is out of the Wholesale Lending business. Per their web site they were licensed in 14 primarily western states.

We spoke to them on the telephone and they want to make it very clear they are moving all reps and employees to retail. Wholesale is expected to be finished on November 5, 2007.

In a letter from the President:

Liberty American Mortgage Corporation has moved to retail production only. The company will continue to fund reverse mortgages, 125% combos, Manufactured Homes and its normal wholesale programs on a retail basis

We will fund our wholesale business until at least Nov 5 and then exit wholesale.

In addition to retail production, the company will be announcing a broker program to participate in Liberty's Niche products next week

We are maintaining our current staff.

Liberty is applying for retail licenses in the 15 states in which it funded wholesale business and expects to hire 25 retail agents by the end of the year.

Frank Sousa

President

HUD reports loan volume of $2,526,872,000 for 2005.

Should any news develop regarding Liberty American, please let us know.