MLN 'Negotiating' on Wholesale Sale

Subprime lender Mortgage Lenders Network, Middletown, Conn., says it is involved in "strategic negotiations" with several Wall Street firms concerning the sale of its wholesale operation.Wholesale production accounts for 75% of the company's originations, according to National Mortgage News. The announcement concerning its wholesale network came on Tuesday, after the firm failed to return telephone calls placed to it by several media outlets, including MortgageWire. The tight-lipped MLN would only say -- via a news release -- that it has "temporarily" discontinued funding loans through the wholesale channel. For now, it remains a retail lender only. It also has a $17.8 billion nonconforming servicing portfolio, ranking 18th nationwide. Sources said the company has been hit hard by buyback requests. Its warehouse providers, sources said, include Merrill Lynch and GMAC-RFC.