Summit Mortgage - Lending Subsidiary of Summit Financial group
They couldn't sell it, so they shut it down. More on the financials.
H. Charles Maddy, III, President and Chief Executive Officer, commented:
2006 was a difficult year for Summit as we came to terms with a difficult business model in an unforgiving economy. Although we had recognized that Summit Mortgage was not performing up to expectations, we were hopeful that conditions would permit more time to realign these activities. Ultimately, however the continuing uncertainty for performance improvement dictated that it was in the best interest of our shareholders to exit the mortgage business, which we have done.
I also like this little bit on how they're getting reamed from Freddie and Fannie stock:
Fiscal year 2005 results include a $1.5 million pre-tax other-than-temporary non-cash impairment charge, equivalent to $940,000 on an after-tax basis, or $0.13 per diluted share. This impairment charge related to $5.7 million of certain preferred stock issuances of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation which Summit continues to own.
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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.