NorthStar Alliance recently stopped funding loans due to a lost warehouse line and is seeking new financing, a source at the company confirmed.

Calls to NorthStar's corporate parent in Honolulu have not been returned. NorthStar Alliance's website has been displaying only a message noting that it would be reactivated.

The source, who did not wish to be identified, said funding was abruptly cut off for those submitting loans over the last couple weeks and brokers received letters thanking them for their service at the end of last week. The source identified Gateway Bank, San Francisco, as the company's original warehouse line provider.

A call to Gateway for comment had not been returned at press time.

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