Mortgage Network Inc. - Wholesale - Agency, FHA/VA, Jumbo
Mortgage Network Inc., also known as Mnet Mortgage Corp. in some states, announced today it would cease all wholesale and correspondent operations effective immediately, citing "unprecedented market conditions." From the announcement:
"Mortgage Network will continue to process any loans that are currently in the pipeline as of December 1, 2008. Loans in a floating status must be locked by Wednesday, December 3, 2008. All loans in pipeline must close and fund no later than Wednesday, December 31, 2008."
This comes just six months after Mortgage Network Inc. unveiled plans to expand its wholesale operations in the southeast. In that June 2008 press release, it was noted that "the company topped $2 billion in loans, the second highest quarter in the company's history and the highest production since the refinance boom of 2003." Based in Danvers, MS, Mortgage Network has 27 retail offices nationwide and averaged over $171 million per month across all business channels in 2007.
Wholesale and correspondent business were handled through the Portland, Maine fulfillment center. Details regarding employees who will be affected, including AE's nationwide, were not available. One source we spoke with surmised the decision to shutdown was due to too much business, implying funding sources simply weren't available to keep up with the company's volume.
Details are still coming in, so stay tuned as we update this listing. If you can provide additional information, please contact us.
pannagpamp at 13:47 2008-12-02 said:i used to use MNet almost exclusively for the longest time. Switched companies about 4 months ago and have been using another lender that had comparable pricing, but MNet almost always beat pricing of my other good lenders. Did their warehouse lines dry up or what happened? I saw their rate sheets on Monday and 7% was not even paying half a point, so i new something was happening. Didn't expect that they were getting rid of wholesale altogether. Permalink
magillavig at 14:46 2008-12-02 said:I assume the retail operations of MNET will be following the wholesale/corr circular spiral into the porcelain drain right? Some of the retail guys in the southeast promised to refi all their clients for life......only they didn't know what a neg am million dollar loan does to a guy when the bubble bursts????? Heck of a place to get a treble hook stuck huh? Good luck getting that out! Permalink
iveseenbetterdays at 00:47 2008-12-03 said:Warehouses are gone. Lost two of their three warehouse lines and everything is in limbo. The company was closing a TON of loans and had few, if any, buybacks or remedies. Liquidity crunch killed this one guys, not bad loans out of wholesale. Permalink
pannagpamp at 10:10 2008-12-03 said:
Warehouses are gone. Lost two of their three warehouse lines and everything is in limbo. The company was closing a TON of loans and had few, if any, buybacks or remedies. Liquidity crunch killed this one guys, not bad loans out of wholesale.I thought that might have something to do with it. As you said, they didn't do bad loans. I think they got even more conservative than most over the last year or so. But, that has helped them survive in wholesale up until now. Permalink
I assume the retail operations of MNET will be following the wholesale/corr circular spiral into the porcelain drain right?Probably not. MNet has a stellar reputation and quality people from top to bottom. Permalink
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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.