Yesterday the Arizona Daily Star published this article about the executives of the now defunct First Magnus Financial Corp. forming and opening another mortgage company, StoneWater Mortgage Corp.
It seems unfair to me that a company can go belly up (which I wrote about last August), declare bankruptcy (all the while not having paid their employees their final wages), and yet come back to life in a matter of months doing the same thing while the mess they left behind still lingers! I know several people personally who were hit especially hard by the repercussions from this disaster, and I’m talking not only about being laid off, but losing cars, homes, and having family life affected.
A brief excerpt quoted Karl F.W. Young, former CEO of First Magnus:
“While it stayed largely away from loans labeled as subprime, First Magnus did do substantial business in “Alt-A” loans, which were offered to borrowers with high credit scores but have been deemed risky by investors.
Young said StoneWater will stick largely to “agency” loans — those that fit the guidelines of government agencies like the Federal Housing Administration and the quasi-governmental mortgage buyers Freddie Mac and Fannie Mae.
Initially, StoneWater will also do business only as a wholesale lender — one that provides funding for mortgages to brokers — not a retail lender that interacts with borrowers, Young said. No lending will be conducted in Tucson, he said.”
Judging from the comments (located at the bottom of the article), many Tucsonans feel the same way.
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I've also deleted the rel='nofollow' for hyperlinks, I think anyone who leaves a comment deserves a link to their site!