RFC Pulls MLN Servicing; More Layoffs at MLN

Residential Funding Corp., a unit of GMAC, has told the struggling Mortgage Lenders Network USA, Middletown, Conn., and an affiliate that it is terminating their right to service loans for RFC.The announcement came late Jan. 26 after the market closed. It is unclear how many loans MLN and its Virgin Islands-based affiliate, Emax Financial Group, service for RFC. Meanwhile, this past weekend MLN laid off 180 employees that worked in its retail division in Middletown. About 10 days ago MLN cut loose 832 people who had been on furlough. It now employs less than 780, compared with 1,800 in early December. MLN is the subject of temporary cease-and-desist orders in all of New England, Pennsylvania, and Michigan. The C&D orders prohibit it from funding new mortgages. MLN services about $17 billion in loans. An auction of $3 billion in servicing rights belonging to MLN was recently scuttled last week, according to the Jan. 29 issue of National Mortgage News.