First Mortgage in California to Cease Operations, Sell Loans

First Mortgage Corp. in Ontario, Calif., has stopped originating mortgages and plans to cease operations.

The lender stopped originations in July, according to a Monday news release. First Mortgage is also in the process of selling off or liquidating its loan and servicing portfolios and its loan origination offices.

First Mortgage earlier this year sold many of its assets, including loan servicing rights, to Freedom Mortgage, President Clem Ziroli said in an interview. Some of First Mortgage's employees moved to Freedom Mortgage at that time.

Ziroli said he decided to exit the business because of his father's advancing age and "regulatory pressure."

Before it began its wind-down, First Mortgage serviced about 32,000 loans, Ziroli said.

First Mortgage has conducted business for more than 40 years in Southern California. The company focused on "a less-wealthy segment of the home-buying public," including first-time homebuyers and the working poor, according to the release.