Another One Bites the Dust

 FW: LENDER'S DIRECT OFFICES SHUTTING DOWN TODAY PERMANENTLY....

Thursday, February 8, 2007

It is with deep regret that I announce effective end of business today the closure of Lenders Direct Capital Corporation's Wholesale Lending Operations and the Layoff of the Company's wholesale staff.

The current state of the US nonprime lending industry (and the default risk associated with it) as a whole and the resulting lack of investor demand for the Company's nonprime loan products are important factors in reaching this difficult decision to cease wholesale originations and fundings effective immediately.

I wish to take this opportunity to sincerely thank each and every one of you on behalf of Management for your tireless work and dedication over these past 3 ½ years.

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I just recieved the above email a few minutes ago and actually i was quite shocked. I funded three loans with them last month and i had a great relationship with them and my AE. I would sometimes broker some of my out of state loans beacuse they had excellent pricing for my clients. The AE for this lender was actually here at my office last week, now she is out of a job. She didnt see it coming. But thats just how it is in this business one day you are a star and the next day you are gone. 90 % of the people who worked for the company will be back in the mortgage industry in some sort of way. Survival of the fittest is the name of the game. We are seeing the underbelly of the Real Estate Boom unravel in front of our very eyes. Home values are not dropping , they simply adjusting to where they should be. This is trend is much more prevalent here in California.

Whos next to bite the dust? Only time will tell.

Any predictions?

New Century is going through some issues with their high default rates. Their stocks are plummeting as well.

Eddy Martinez

Best Rate Funding - Direct Lender - Wholesale Rates

Senior Loan Consultant

Direct Line: 1-888-702-2225 x. 115

E- Fax :1-310-943-6551

bestrate Funding

"A business that makes nothing but money is a poor business. "
- Henry Ford