Loan City Closes; CMG Takes Pipeline

California wholesaler LoanCity closed its doors on Tuesday, telling its brokers that "we cannot meet the capital constraints needed to continue."News of its closing was first revealed on the Grapevine, a bulletin board operated by National Mortgage News. On its website, LoanCity posted a message telling brokers that all mortgages not funded by March 20 "will have to be taken elsewhere to close." It also notes that "our friends" at CMG Mortgage will handle "all active loans in the LoanCity pipeline, which are currently scheduled to fund later than March 20, as these loans can be underwritten, relocked and funded by CMG Mortgage in an expedited manner." Based in San Ramon, Calif., CMG is operated by industry veteran Chris George. LoanCity can be found online at http://www.loancity.com.