MortgageIT - Wholesale
The official announcement was just sent out:
The Business Journal in Milwaukee reports 72 employees will be affected by the closure.
Update - 2008-12-10: We are just now getting news that MortgageIT just announced in a conference call to AE's that Deutsche Bank's Wholesale Lending operations are shutting down. From one Broker:
"Just heard from my AE that Duetsche Bank is shutting down MortgageIT effective February 9th. They will not accept any new locks as of tomorrow but will honor what is in their pipelines up until Feb 9th!!!!"
From another tipster, "Last day to lock/submit is December 11."
We are awaiting official announcement and confirmation from the company before we transfer this to the Implode list.
Update - 2008-02-29: From an AE who contacted us: as of today, "all production offices except the one in Madison, WI and Portland, OR, will be closed." Forum posters report severance packages were received today for affected employees ... excluding AEs. Several have told us they received a base salary, but in one former employee's words it was the "same severance as the October 2nd layoffs. AE's didn't get anything then either." Emails have been streaming in from AEs expressing their farewells to Brokers since our last update.
Overall, the company's business is plummeting. One poster reported January 2008 volume of $115 million, and preliminary figures for February of $35.5 million.
Another tipster wrote:
MortgageIT had over 2500 employees according to their web site when we checked today. Madison will stay open to clean up the pipe according to sources. Time will tell...
Update - 2008-01-23: There are rumblings in the ranks of soon-to-be ex-employees of DB's MortgageIT. It seems there may be some unexpected changes to severance benefits, according to posts on our Forum.
In one comment from Janurary 17th:
"This morning, MortgageIT's employees received an email from John Novak, Director, Global Banking HR with an attachment referencing the severance policy. LOW-AND-BEHOLD there is a NEW paragraph added stating: Employees of dbhomelending, LLC, MortgageIT, Inc, and Urbistar, Inc shall not be eligible under these benefits....blah, blah, blah. It also came with a revision date of March 22, 2007."
Click here to visit this Discussion thread.
Update - 2008-01-16: In an expected announcement, MortgageIT and DB states they are committed to the Wholesale channel, but admits their current organizational structure does not work. Expect ALL Branches to close except Madison.
"In order to transition to this revised business model, beginning in the next few weeks, we will be closing most of our production branch offices and migrating production fulfillment to our branch in Madison, Wisconsin. Over the next few days, branch employees will be notified of the specific plans for their office and the timeline for an orderly transfer of any loans in process to Madison."
To view the entire letter, please visit our Forum here.
Original Post - 2008-01-07: The rumormill is about to fly off its axle with regard to MortgageIT (subsidiary of Deutsche Bank). A lending guide announcement issued to brokers and correspondents on 01-02-07 highlights the newest round of product and program modifications and eliminations just days after news broke that Deutsche Bank would be reviewing its mortgage operations going into 2008.
We've been hearing about layoffs and office closures for sometime. While the company website indicates some 20 wholesale offices nationwide, tips have come in that several have or will be closing. One contributor writes:
Another wrote in that Rancho Cucamonga got the same notice. A broker wrote in about the closure of the Las Vegas office, noting that they stopped accepting new loans on 11-2-07.
We will continue to follow this as it unfolds. Please contact us if you have more information.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.