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.
BobbaLouie at 13:34 2009-02-02 said:The term "Mortgage Broker" will soon be a thing of the past. Permalink
NOKIDDING327 at 23:01 2009-02-16 said:"The unprecedented liquidity problems that continue to plague the mortgage industry have caused USA Home Loans to indefinitely suspend its' Wholesale Operations" NO,try looking at your HUD default rate being 311. the only thing that is a plague on the market is a company who continues advertising doing bad FHA loans and then wonders WHY they are closed. The market just beat HUD to the same end. the real problem here is why HUD takes so long; HUD says 200% is the limit and yet lets companies like this continue. 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.