Homecommings Financial Imploding

Posted: Wed Sep 03, 2008 4:29 pm

This email just in from my AE

We are closing wholesale

We will close out the pipeline and I wil tell u more news as it unfolds today

Posted: Wed Sep 03, 2008 4:37 pm

just got the same email.

Posted: Wed Sep 03, 2008 6:17 pm

This is awful news. I know lots of you will rip homecomings because they had a history of loose underwriting but lets be real here. Rescap was one of the largest players in the wholesale division and their closure of all mortgage operations is very scary. I think its time for all brokers on here to update their current lender list to help one another out. Here is mine:

Chase
Citibank
Countrywide
ING
Parkside Lending
Provident
US Bank
Wells Fargo

Posted: Wed Sep 03, 2008 6:26 pm

Attached is the email I received today as well

It is with great sadness, I must inform you...Homecomings Wholesale is closing
Wednesday, September 3, 2008 10:28 AM
From:
"XXXXXXXXXXXX" <XXXXX.XXXXX@gmacrescap.com>
Add sender to Contacts
To:
undisclosed-recipients
Please note all loans must be submitted by tomorrow 9/4 at 3:00pm and loans must be locked by3:00pm on 9/9/08.
It has been my great pleasure working with you.
I hope to work with you again in the near future.
Sincerely,
XXXXX XXXXXXX, Account Executive
818-XXX-XXXX

Dear Homecomings Financial, LLC Broker,

In response to persistent challenges in the mortgage market, Residential Capital, LLC (ResCap) has exited the wholesale mortgage lending businesses.

Effective 5 p.m. eastern time on Thursday, September 4, 2008, ResCap’s Homecomings Financial, LLC wholesale division will no longer accept new loan submissions.

Homecomings Financial will honor all contractual obligations on applications submitted electronically as of 5 p.m. eastern time, September 4.

Loan requests currently in progress as of the September 4 deadline are subject to the following conditions:

* All loan closings must occur by 5 p.m. eastern time, October 24, 2008. Montana loans must fund by September 30, 2008.
* Rate sheets will continue to be published through October 24.
* Forward/advance rate locks will not be accepted after 5 p.m. eastern time, September 4.
* All floating rate loans must have interest rates locked by 5 p.m. eastern time, September 9. All floating loans will be cancelled on September 10.
* Interest rate lock extensions or modifications will be allowed through 5 p.m. eastern time, October 23.
* All conditions for approved or suspended loans must be submitted by 5 p.m. eastern time, October 17.
* Your system access and broker agreement will be terminated immediately after your last loan has closed.
* You must obtain advanced approval from ResCap for any deviation from the preceding timeframes.

The decision to exit the wholesale channel is a difficult one, but one that ResCap feels is necessary to structure our operations cost-effectively in the current market.

We have enjoyed and appreciated our ongoing partnership with our strong network of brokers. During this transition, we will continue to provide you with a high level of support.

For questions about loans in progress, please contact your Account Executive. After September 19, please contact your Homecomings Financial wholesale branch office for assistance. To find contact information, please visit our website at www.hfwholesale.com.

We thank you for your business.

John Gray

Executive Vice President

GMAC Mortgage - US Lending

Wholesale Broker and Sales Q&A

Posted: Wed Sep 03, 2008 7:12 pm

Sachgan9:
On your lender list:
Franklin American also seems to be holding up well- Good FHA and nope I don't work there.
Many of my colleagues have been very happy with them.

Feel free to PM me

Dud? Joined: 03 Sep 2008 Posts: 2 Location: Colorado

Vertice is still doing well also.

Dud? Joined: 03 Sep 2008 Posts: 1 Location: Pennsylvania

Sachcan9 wrote:

This is awful news. I know lots of you will rip homecomings because they had a history of loose underwriting but lets be real here. Rescap was one of the largest players in the wholesale division and their closure of all mortgage operations is very scary. I think its time for all brokers on here to update their current lender list to help one another out. Here is mine:

Chase
Citibank
Countrywide
ING
Parkside Lending
Provident
US Bank
Wells Fargo

You should add SunTrust to you list.

Posted: Wed Sep 03, 2008 7:48 pm

Mortgage1 wrote:

Sachcan9 wrote:

This is awful news. I know lots of you will rip homecomings because they had a history of loose underwriting but lets be real here. Rescap was one of the largest players in the wholesale division and their closure of all mortgage operations is very scary. I think its time for all brokers on here to update their current lender list to help one another out. Here is mine:

Chase
Citibank
Countrywide
ING
Parkside Lending
Provident
US Bank
Wells Fargo

You should add SunTrust to you list.

AE from Suntrust in my office just this morning...

Their words "The only thing we offer that is different is Rural Program" Now I do not know if that means that the other product is good or bad...but it was not a ringing endorsement...

Dyn-o-mite! Joined: 01 Jan 1970 Posts: 342

StephenF wrote:

Mortgage1 wrote:

Sachcan9 wrote:

This is awful news. I know lots of you will rip homecomings because they had a history of loose underwriting but lets be real here. Rescap was one of the largest players in the wholesale division and their closure of all mortgage operations is very scary. I think its time for all brokers on here to update their current lender list to help one another out. Here is mine:

Chase
Citibank
Countrywide
ING
Parkside Lending
Provident
US Bank
Wells Fargo

You should add SunTrust to you list.

AE from Suntrust in my office just this morning...

Their words "The only thing we offer that is different is Rural Program" Now I do not know if that means that the other product is good or bad...but it was not a ringing endorsement...

Could just be a bad AE, there is still plenty of those out there.

Wrecking crew Joined: 07 Aug 2007 Posts: 1827

For all of the Homecomings folks (especially those that I worked with), I hate to hear this for you all.

Blessings.