Wednesday, February 28, 2007

Folsom Mortgage Lender Goes Belly-Up

From News 10:

Folsom-based Central Pacific Mortgage has abruptly shut down operations, telling employees it can't afford to pay them.

A memo to the staff from the president and CEO John Courson on Monday said the company would cease operations immediately.

"We do not have sufficient cash to fund the February 28th payroll. Employees should remove their personal items from the office at the end of the day," Courson wrote.
...
A recent staff directory indicated there were more than 80 people working in Folsom.
Hat tip: Max.

From their website:
Central Pacific Mortgage (CPM), founded in 1977, is headquartered in Folsom, California. As a mortgage banker, we engage in the business of originating, closing and selling residential mortgage loans. Today, we have over 100 retail and wholesale origination offices across the country. When you join the CPM family, you align yourself with a company that cares about the well-being of you and your staff.

6 comments:

drwende said...

Now there is a company that was doomed, once the market slowed.

1. Their entire business was residential mortgages.

2. They were in both the jumbo and subprime markets.

3. They grew by signing up affiliates with a simple application and minimal review, so just about anyone could make loans on their behalf.

4. Relatively sane loan-makers had started jumping ship to affiliate with other companies that weren't as far into subprime exploitation.

norcal ray said...

It sucks the employee didn't get their last paycheck. The owner(s) probably is doing well and made a lot of money over the years.

This is lot like the dot com bust with firms shutting its doors abruptly and with no last paychecks and no serverance package for the workers. What happened to stewardship for employees?

Bakersfield Bubble said...

Intially it looked like they were closing the Ivanhoe Mortgage division only - looks like they threw in the towel on the whole company.

Patient Renter said...

It's healthy for the market, but sad for the employees that lost their jobs.

I noticed that it doesn't appear to be on the ml-implode site.. yet.

ralphk said...

From Craigslist. They are Price Improvements now!

Who needs a 4897 sq ft home???

$975000 ~PRICE IMPROVEMENT~ 4897 SQFT 5BD 5.5 BA HOME

Perfect Storm said...

"We do not have sufficient cash to fund the February 28th payroll.

Well the good thing is that all the employees know exactly where to go to get a nice ARM mortgage to see them through the tough times. That's if they want to swallow the same poison they have been selling.