Meritage Mortgage - Subprime unit of NetBank
2006-11-08
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stories: banknet360.com
94 people lost their jobs or were transferred.
Apparently someone acquired the carcass of Meritage -- I wonder if they're having any luck with that. Ok, apparently LIME Financial is just acquiring Meritage's staff.
(Update, 2007-02-07): Losses connected to the shutdown of this segment and the unstoppable flood of delinquencies have hit NetBank "harder than expected":
NetBank had previously forecast an aftertax loss of 74 cents to 87 cents in the quarter, but now expects the result to fall "far below" that estimate, provided on Dec. 18, it said in a regulatory filing.
As a result of its shutdown of the mortgage business, which was completed in the fourth quarter, NetBank has been forced to buy back from investors the loans that were defaulted, leading to $26 million more in provisions than it was expecting, the bank said.
Hilariously, they're looking to sell their ATM and merchant servicing business to make their bills. Reminds me of the distressed consumers they preyed upon to goose those subprime origination profits back in the "good 'ol days" (of three months ago).
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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.