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 helping_user
Joined: 31 Mar 2006
Posts: 815
Location: Hawaii
155.55 Dollars($)
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 Posted: Thu Aug 23, 2007 5:21 am Post subject: First magnus Financial Corp to follow American home mortgage |
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Hi all,
After American Home Mortgage, it is First Magnus Financial Corporation who has filed bankruptcy chapter 11. As per the latest news, the company has stopped offering loans and taking further loan applications since last week. It's really shocking; the company had around 5000 employees..god knows what's in store for them. |
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miller_st
Joined: 17 Jan 2007
Posts: 917
168.95 Dollars($)
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| Posted: Thu Aug 23, 2007 12:30 pm Post subject: |
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I too heard about it. FMFC, nation's second-largest privately held mortgage lender has stated unprecedented conditions in both the national real estate market and the secondary mortgage market as the main reason for shut down of their operations.
They were involved in lending operations in all the states and in 2006 had reported funding $30 million loans. So it is real shocking news for most industry professionals.
Miller |
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carnahandavid
Joined: 21 Dec 2006
Posts: 239
58.41 Dollars($)
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| Posted: Fri Aug 24, 2007 5:52 pm Post subject: |
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As we know that under Chapter 11 bankruptcy reorganization, companies work out plans to repay creditors. But First Magnus will not attempt to reorganize the company.
G.S. Jaggi, First Magnus president and chief executive officer has said that:
| Quote: | | We are saddened that First Magnus has been placed in this situation by the extensive and sudden liquidity crisis in the secondary mortgage market. 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. |
In a news release by the company it has been said:
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"First Magnus believes that, under the protection of Chapter 11, it will have the time and opportunity that it needs to maximize the value of its assets for its creditors and other constituencies, and to affect an orderly wind down of the Company".
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1606
Location: MASSACHUSETTS
150.38 Dollars($)
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| Posted: Wed Aug 29, 2007 4:38 am Post subject: |
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Yes helping user, it's shocking but not at the midst of this crisis when several big companies have taken the same action, that is, filed bankruptcy. In fact, First Magnus had made loan offers worth $17.1 Billion from january to June, this year. But it stopped offering any loan since the past few weeks. It's a sad story really for many..
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