First Magnus Stops Funding

First Magnus Financial, Tucson, Ariz., the nation's 22nd-largest residential lender -- and a top-ranked wholesaler -- stopped funding loans Wednesday night, blaming its problems on what it calls the "collapse of the secondary mortgage market."In a statement sent to brokers, the nondepository said it "will not fund any future mortgage loans, and is no longer accepting any mortgage loan applications or funding any mortgage loans previously originated and not yet funded. We explored all options before taking this action, but were left with no viable alternative." In the first quarter, the privately held mortgage banker funded $6.59 billion, a 33% increase from the level recorded a year earlier. Thursday morning its executives could not be reached for comment. First Magnus can be found online at http://www.firstmagnus.com.