ELoan Mortgage bailed out on the subprime market about a year ago. Back then ELoan Mortgage was the first of many lenders to turn their backs on the subprime borrower.
As I predicted a few posts back, the bruised credit borrower would be left out in the cold the minute the big boys figured out the subprime loans they pushed so feverishly just 18 months ago are ticking time bombs ready to explode.
ELoan Mortgage subprime lending division showed a $39 million loss. This lead to the retirement of the wholesale operations President, Cameron E. Williams.
Like ELoan Mortgage, Mortgage Lenders Network of Connecticut also closed their bad credit wholesale operation so abruptly as to leave borrowers in the lurch for loans already approved. (see comments below)
On a personal note, a real estate agent friend of mine recently corroborated this ever increasing problem when 3 out of 4 of her closings were stalled while the buyer’s mortgage broker scrambled to find another lender after the first one bailed for the exact same reasons.
If you are a consumer needing a bad credit loan, or you’re in one of these loans now requiring a refinance to avoid increasing rates, you’ve probably already missed the boat.
A word to the wise…
Of course, their A paper lending division is still up and running as their TV commercials never stop!
ELoan Mortgage whose slogan is “Radically Simple” has widespread TV ad campaigns touting no cost loans. This review of them here would have to be negative since that right there puts them in the dog house with me. Perpetuating the idea mortgages are free sends a mixed message and does no one any good.
Of course, if you’ve read any Mortgage Insider articles on no cost loans you know the only way they can deliver on that message is to charge higher rates…much higher. You would also know that since ELoan Mortgage is a bank they will never have to disclose the “extra” profit they make over and above covering the closing costs.
I’ll conclude my ELoan Mortgage review by saying they are also owned by a Puerto Rican mega-bank called Popular, Inc. I don’t know about you but I’m not sure I’d want private financial information sitting off-shore.
Some thoughts about ELoan Mortgage to ponder before submitting a “Radically Simple” online loan application!
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