CA Wholesaler Shuts Doors

Capitol Commerce Mortgage, Sacramento, Calif., has ceased funding residential loans and is contemplating filing for bankruptcy protection, sources have confirmed to MortgageWire.Industry executives say the privately held company had been funding at least $4 billion a quarter in home mortgages -- mostly through loan brokers -- and reportedly had been selling loans forward without being properly hedged. The company could not be reached for comment at its Sacramento headquarters or at satellite offices in Houston and Dallas. MW broke the news of the company's closing in its early posting on Monday. CCM is not a subsidiary of a federally insured depository, and had been funding loans using warehouse lines of credit made to it by both banks and Wall Street firms, sources said.