Mortgage Lender Update: First Magnus Files Chapter 11 Bankruptcy; Greenpoint Closes
In a move that was not exactly unexpected, First Magnus filed a Chapter 11 petition in Tucson, almost a week after it shut down. First Magnus recently acquired local lender Amtrust Mortgage, which closed with the rest of First Magnus.
From the linked Forbes article -
The lender's total assets were estimated at more than $942 million and its total liabilities at nearly $813 million in the company's bankruptcy petition, which was filed in U.S. Bankruptcy Court in Tucson.
"After carefully considering our options, a Chapter 11 filing provides First Magnus with the ability to realize the highest value of our assets for our creditors," First Magnus President and Chief Executive G.S. Jaggi said in a news release.
In related news, Greenpoint Mortgage announced it was closing on Tuesday. It is owned by Capital One Finance, and includes two offices in Georgia.
Countrywide laying off loan originators?
Meanwhile, Georgia is now second in the nation in foreclosures.
Do you think the owners of companies such as First Magnus and Amtrust Mortgage understand (however small) their part is in the mortgage crisis in the United States?