Mid Atlantic Capital LLC - Retail Net Branch Operation
Branch Managers have received an announcement that Mid Atlantic Capital, headquartered in Sewell, NJ is closing its doors. Cited was a loss of volume and "the evergrowing expense of legal actions generated by numerous Lenders attempting to recover their losses." Employees expecting direct deposit of their paychecks today may be in for a disappointment: according to one source, the company is unable to meet payroll for its remaining branches and employees. Owner Don Forman noted in the memo, "legal and accounting professionals are in the process of dealing with all of the outstanding issues that need to be resolved."
One of those "outstanding issues" is ongoing litigation brought by Merrill Lynch's First Franklin on 2007-09-07. Referencing ten loans Mid Atlantic Capital brokered to First Franklin, the lawsuit alleges breach of contract, negligent misrepresentation and unjust enrichment. Damages are claimed in the amount of $1,027,280.90. A settlement conference has been scheduled for November 13, 2008.
Reported to us as a net branch operation that "had the most branches of any company in New Jersey," Mid Atlantic Capital boasts 75 branch locations with over 600 employees on their web site, licensed to do business in 23 states. Another email stated, "They've already shut down 75% of their net branches and left 10 open. The 10 open are having problems getting their money out of their accounts." Several told us the company recently lost its warehouse funding facility. "Without a warehouse line in place," one source wrote, "the branches they have decided to keep [are] looking for another opportunity."
Offering a complete range of Retail lending products, Mid Atlantic Capital was also an FHA/VA approved lender. Email from a source familiar with the company indicated "they were probably 20 M a month or more total at their peak." We attempted to contact the company without success. Contact us if you can provide additional details. Your comments below are welcome.
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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.