December 6th, 2009 9:10 PM by Eric Fang
Most of my readers knows that Amtrust parent company filed bankruptcy Friday Dec 4th. It's a big news to the borrowers as well as the mortgage originators. Though the operation will be as usual Monday Dec 7th, the picture about this company is different now.
When TBW(Taylor Bean & Whitaker) file bankruptcy August 5, I have about a few loans affected(signed but not funded). And I have one loan still not closed yet for various reasons.
But this Amtrust news does not affect as that much since I did not submit that much loans to this lender recently. But still I hope I can close those loans in the pipeline this week(most of them signed) for my clients.
We were not that surprised about the news. We got some tips the end of 2008 that this bank was in trouble because of Non-performing Loans, especially those ALT-A loans; We(not me, a friend of mine) called CEO of Amtrust the end of 2008 and got the confirmation the business was ok for the short term and we hoped that the refinance booming will float this sinking boat. And a year later, this company can not survivor and has to be acquired by New York Community Bank.
This company has great technology and the greate rates we like, that's why we submitted a lot of loans to them in the past 4-5 years. And I hope New York Community Bank can still keep their super technology and if possible, keep them on the wholesale channel.
Let's wait and see how New York Community Bank handle this ailing beast. Hopefully we can still submit the loans to this bank, a new member to NYCB(Newyork Communty Bank), just a wish.