MLN Rescuer Needs More Time

An unnamed investor that may pump money into the struggling Mortgage Lenders Network of Connecticut cannot do so for four to six weeks, according to a company e-mail message provided to MortgageWire.The message, written to laid-off employees by MLN vice president of human resources Gary Porter, reports that the nondepository took what it calls a "viable business plan" to its current investors and lenders, "two of whom surprised us by passing on it because of some short-term cash requirements." As for the "new investor" whose identity is undisclosed, Mr. Porter says, "We and the new investor remain committed to building a wholesale platform." As reported in MW Jan. 23, MLN sent official layoff notices this past weekend to 832 workers that had been on furlough. (The official termination date for the workers is Jan. 19.) The nondepository now employs 960, compared with 1,800 in early December before it shuttered its entire wholesale network (which accounts for 90% of its originations). In the e-mail message, Mr. Porter tells the laid-off workers that once its investor is on board, "we hope you consider rejoining us." MLN can be found on the Web at http://www.mlnapproves.com.