August 22nd, 2020 by MG
Another nail in the Arizona mortgage coffin. The Arizona Daily Star in Tucson reports:
“First Magnus Financial Corp. still is not sending out paychecks to its former employees. But the Tucson-based mortgage lender announced it is creating an assistance fund of more than $1 million to ease the burden.”
“In a news release, the company said paychecks have been delayed because its accounts were frozen by investors that provided capital to First Magnus to make loans. The company was forced to shut down operations last week because it could no longer sell the loans it originates on the secondary market.”
“Earlier, the company told employees to expect their checks by mail rather than direct deposit. Under both state and federal law, checks were due to employees on Monday.”
“First Magnus, which identified itself as one of the nation’s largest privately-owned mortgage lenders, made loans in all 50 states and employed nearly 6,000 nationwide. Almost all of those workers lost their jobs on Thursday.”
“In a document filed with the bankruptcy court, the company asked for immediate permission to pay its remaining 159 workers, including $8,333 to each of five company officers. First Magnus requested to pay its former employees “when funds become available” through a loan or the sale of assets.”
“The company has not offered immediate assistance to former employees elsewhere in the country. Baraff said the company decided to help only former Southern Arizona employees because their jobs are more specialized, and they are expected to have more difficulty finding jobs.”
Check Out Some Related Posts
- First Magnus Financial Corp. Broke A Federal Law By Providing Incentive Payments To Mortgage Brokers
- Still Think That The Housing Bubble Is The Fault Of The Buyers And Not The Lenders?
- Can Ya Spare A Job Brother? Mortgage Job Losses From The Housing Bubble Pass 40,000 – Construction Losses Pass 20,000
- Who Is Countrywide, Why Are They In Trouble – What Went Wrong And What’s Next
- Arizona Now Seeing Layoffs In The Valley As The Housing Bubble Continues To Burst
- Countrywide In Trouble: Countrywide Begins Layoffs
- Will Countrywide Be Part Of A Federal Bailout? Will Countrywide Go Bankrupt? Will Countrywide Singlehandedly End The World In 2012?
- Was The Subprime Meltdown Caused By Cash-Out Refinances And Bankruptcy Reform?
- “We’ll Help You Avoid Foreclosure!” – The BBB Warns Arizonans About Becoming Victims Of Foreclosure Rescue Scams
- 5 Signs That The Worst Is Yet To Come With The Housing Bubble