MLN Stops Funding; Future in Doubt

Subprime wholesaler Mortgage Lenders Network, Middletown, Conn., has stopped funding loans, and is talking to investors about a possible sale of its assets, industry sources have told MortgageWire.For the past month, rumors have circulated that the company has been hit with huge buyback requests. The fact that the lender has stopped funding was first reported by the Associated Press on Tuesday morning. In mid-December, National Mortgage News broke the news that MLN senior vice president Paul C. Impagliazzo, a top wholesale executive, had left the company. Around the same time, the nondepository -- without explanation -- issued a statement saying it is "actively" accepting submissions and funding loans. According to the Quarterly Data Report, MLN is the nation's 15th-largest subprime funder. As of MW's deadline, no one at MLN's headquarters was answering its main switchboard.