Premium Capital Funding, LLC dba TopDot Mortgage - Retail, Commercial - Agency, FHA

It appears that TopDot Mortgage has now ceased originating any new business, as evidenced by an announcement now appearing on their web site (view cached):

"At this time, Topdot is not accepting or processing mortgage applications. We hope to resume our business activities in the near future. Please check back regularly for updates."

A source that contacted us reported the company's remaining lending operations shut down as of the end of last week (2010-02-05) and "all employees in origination" had been let go. We were unable to reach anyone with the company via phone; most of the numbers listed on their web site are now inoperable, ring unanswered or are routed to voicemail.

Previous Ailing/Watch List entry - 2010-01-25: The press release from the U.S. Department of Housing and Urban Development pretty much says it all:

"FHA AND GINNIE MAE TAKE ACTION AGAINST TOPDOT MORTGAGE"

"The Federal Housing Administration's Mortgagee Review Board (MRB) today immediately and permanently withdrew the FHA approval of Premium Capital Funding, LLC, a Jericho, New York-based lender doing business as TopDot Mortgage. Today's action prevents TopDot from participating in FHA programs and seeks a monetary penalty of $674,000.

In addition, the Government National Mortgage Association (Ginnie Mae) is defaulting and terminating TopDot as an issuer in its Mortgage-Backed Securities (MBS) program and is ending the Company's ability to continue to service Ginnie Mae securities. Servicing of TopDot's $181.2 million dollar Ginnie Mae portfolio will be transferred to LoanCare Servicing Center, Inc."

Based in Jericho, NY, Premium Capital Funding, LLC dba TopDot Mortgage is known for it's "Mortgage News Update" TV Ads. The company's loan originations averaged more than $76 million per month in 2008. According to the web site (view cached, the company maintains "9 branch locations and [is] licensed to originate loans in 29 states."

Information is still coming in and we have no specifics on how this will affect the business going forward or how many employees may face losing their jobs. Older records from Dunn & Bradstreet indicate there were 250 employees at the company's headquarters in Jericho, NY.

National Mortgage News reported the company was "still in business originating Fannie Mae and Freddie Mac loans" but said "late last week rumors were circulating that TopDot was about to lay off a large chunk of its staff in Long Island."

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