Popular Warehouse Lending - Warehouse Lender
Popular Warehouse Lending (PWL) of Marlton, NJ, a Division of Banco Popular is winding down operations. "Relationship Managers" have all been let go as of December 31, 2007, leaving a staff of about 10 to 12 employees. Down from around 200 Accounts, they are well below 100 now.
Last fundings are expected to be in March, with a complete shutdown slated for June of this year. In bold letters on the front page of their web site:
"PWL is no longer accepting new applications"
"PWL used to have commitments in excess of $200 million" according to one source. With the closure of First Collateral Services, and the squeeze created from the downsizing of National City Warehouse, plus the rumored shutdown of Credit Suisse Warehouse, this is clearly a sector in trouble. The 'domino' effect will certainly topple a large number of lenders in the near future.
On the day we posted this, Banco Popular's shares are up, based on Raymond James analyst Anthony Polini saying the company "has refitted itself to be less risky." This may include dumping eLoan!
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Other Banco Popular News
From an earlier report we sent out in mid-December: In an "Urgent Notice" put out by Frank Davis (Director), Banco Popular (BPNA) announced they are closing their Broker Home Equity Program. This was a four-and-a-half year 'pilot-program' that may have never gotten of the ground. Doing business primarily in the Greater Chicagoland area, they did business with about 50 Brokers and maxed out at well under $10 million per month.
The layoffs and closing of this division was from what they consider "non-core business." Final date for funding loans will be February 14, 2008... just in time for Valentine's Day.
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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.