USA Home Loans - Wholesale - FHA

Brokers today received a brief email with the following announcement from David M. Vach, President of USA Home Loans, Inc.:

"The unprecedented liquidity problems that continue to plague the mortgage industry have caused USA Home Loans to indefinitely suspend its' Wholesale Operations. Without the ability to obtain required funds in a timely manner from our secondary partners, we cannot commit to the level of service that we expect and the customer deserves in a mortgage transaction. We regret that this comes abruptly in the midst of a surge in refinance business, but we hope that it is understood that we have made any and all attempts to remedy this situation before making this unfortunate decision. We apologize for any inconvenience that this may cause to any of our brokers who have recently submitted new business. USAHL will not be closing any more wholesale loans as of January 30, 2009. Any loans that have been closed up to that date will be funded in a timely manner subject to the availability of those funds from our warehouse lenders."

Said one AE to their clients, "This news has come as a shock to me as much as you..."

With its headquarters in Towson, MD, USA Home Loans was doing business in 34 states. The Wholesale sales team was comprised of eight account executives. Overall volume for 2007 averaged just above $28 million per month, about 75% of which was attributable to wholesale according to a source we spoke with.

Retail remains in operation, we were told, with "over 150 loan specialists" per the division's web site. There are also two branch offices in Fallston, MD and Langhorne, PA according to CityTownInfo.com.

Please send us an email if you can add more detail.