Correspondent loan saga follow up – part 6

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

If you’ve been reading Blown Mortgage for a while you know that my company is a correspondent lender. This means that we fund loans in our own name and then sell them, one-by-one, to investors who purchase the closed loans from us. You also know that we had a loan scheduled for sale to New Century, which went awry when the stopped funding loans. You can catch up on the saga here in correspondent loan follow up parts 1, 2, 3, 4, and 5.

Well, we finally are a step closer to closure. We were able to fund the loan via a refinance with a new bank to get it off of our warehouse line! This is great news since it was very much in doubt whether we would be able to do so or not.

We took a loss of $71,912.68 on that single loan.

I have never been so happy to lose so much money all at once. The saga is not quite over. We need to secure the private second that we are carrying back on the property for the balance above, but it is only going to be worth pennies on the dollar since the property values have seriously tanked in the area. But at least it will be an "asset" on our books – and using New Century valuations we’ll be able to book it at the full loan amount .

I’ll let you know once it is all wrapped up – but this was the biggest step and it is done, and we’re still standing (kind of, more on that later) and I’m still alive and well so that is all great news. Thanks for all the support from everyone through all of this!