Discussion on U.S. Mortgage Corp. - Retail

Schumpeter Reincarnate Joined: 24 May 2008 Posts: 46268

http://ml-implode.com/imploded.....02-06.html

Dud? Joined: 03 Feb 2009 Posts: 4

US Mortgage is the parent compnay of Icon Residential Capital. Are they tanking too?

Dud? Joined: 07 Feb 2009 Posts: 2

It's looking that way.

Dud? Joined: 07 Feb 2009 Posts: 2

I feel for the employees, but senior management will get what they deserve.

Posted: Sat Feb 07, 2009 1:26 am

I spoke to some people including my Icon rep who I've known for a long time and followed him through some transitions. Here's what all had to say - Us Mtge is the sister company to Icon Res. Both were given lines by Grand / Carnegie Banks. Us Mtge was losing their lines with FNMA and their investors for yet unknown reasons (probably high deliquency ratios as they were primarily FHA). Icon over the past couple months was becoming more and more independant from Us Mtge. Icon did use Us Mtge to u/w their fha business but in the past few months were gaining their independence from them and subsequently all fha business was transferred and u/w by Icon itself out in Cali.
Icon will probably have a bumpy week but they have direct lines with FNMA and these other banks, and other investors and they concentrated more on agency business so all bets are that they will be fine.
Icon has recently hired a dozen or so underwriters, dozen new loan setup people and such, but then again who really knows anything in this market.....

Dud? Joined: 07 Feb 2009 Posts: 1

I work in the HQ of US Mtg/CU National. What we are being told is that McGrath stole $100MM. He was double booking loans.

FBI took the McGrath's passports and discovered plane tickets out of the country, prior to serving the search warrant on HQ on 1/27.

No more loans are being closed through any of the related companies. Everyone is out of a job and the entire organization is being shut down.

Posted: Sat Feb 07, 2009 7:54 pm

Where is Michael now?

Is he in jail ?

Dud? Joined: 07 Feb 2009 Posts: 5

I learned a long time ago that rumors are usually b.s.. US Mortgage is closing, but there isn't any thief laying in the weeds. No one ran off with the money. They just made a whole bunch of bad moves all at the wrong times. They got caught getting into the Wholesale market with the move to buy ICON in the worst mortgage market in US history. They simply bleed to death. Huge overhead at not enough revenue.

True the CEO made some bad investments, but no one stole money and put them out....they just could sustain the ongoing loses.

Sometimes the truth is simple, still hurts. Some people will be held accountable, but USM was doomed by the economy about 2 years ago.

I worked there too......and I know the truth.

Dud? Joined: 07 Feb 2009 Posts: 14

its all BS...rumors just do not start - someone heard the story, saw fnma drop US/CU like a hot potato and started talking!

i guess CU National should be chalked up as 331 and Icon as 332

the way things are going - Grand Bank better look for a new platform or they will be 333

The mortgage busines sucks and even when things are going well - a greddy P.O.S. owner will bring it ALL down!

i guess 600 people will hit the numbers for the march jobs report from pine brook!

Dud? Joined: 08 Feb 2009 Posts: 1

I work there as well and these are not rumors. The owner of the company was stealing money. The FBI were in our offices all day 1/27/2009
I should know.. I was there at my desk when they made us all stop what we were doing and put us all in a little room until they saw if our names were on the list or not. If you work there you would know this Mtgguy111

Micheal Mcgrath was messing with servicing and double selling loans he had no rights to sell in the first place. Why do you think FNMA wont do business with them anymore and most of the credit unions are all pulling out as we speak if they haven't already. The FBI and IRS don't come to your office because you made bad investments! Come Monday, we will all be looking for new jobs.