The latest tragedy in the mortgage debacle, coming this morning, is First Magnus Financial Corp. First Magnus, based in Tucson Arizona, received the news Wednesday evening from Great Southwest Mortgage, its retail arm, that they were no longer funding loans.
First Magnus has described itself as “one of the largest privately held mortgage banking operations” in the country, lending in all 50 states. In 2005, First Magnus made the list of Inc. magazine’s 500 fastest growing private companies and by 2006 funded loans in excess of $30 billion.
In other news, Countrywide taps into a $11.5 billion line of credit to maintain its liquidity. Countrywide Financial, the nation’s number 1 writer of mortgage loans, said it is toughening the underwriting standards on the home loans it will make going forward. This news comes a day after Countrywide’s stock fell a whopping 17% feeding the fears about the problems facing the company. - Source: Minnesota Mortgage Blog
