Mortgage Network, Danvers, Mass., has temporarily suspended its wholesale and correspondent originations in order to cope with a federal policy-driven spike in refinance applications that an executive at the company said has strained market-wide warehouse line capacity in the channels.
"We still love wholesale and correspondent, it's just the ... lines [are] restricted," Executive Vice President Brian Koss told National Mortgage News. He said the company is exploring several options to try to address the problem before January. He said the retail arm of the company and the institution as a whole remains sound.
"You want to leave your loan with us, we're fine as an institution, we've just had too much capacity," Koss said. The company, which also does business as MNET Mortgage, will continue to process any loans currently in the pipeline as of Dec. 1. It said loans in a floating status must be locked by Dec. 3 and loans in the pipeline must close and fund no later than Dec. 31.
