Top-50 B&C Lender Fails

Sebring Capital, a Texas-based subprime wholesaler, has shut its doors amid rumors that the company was hit by large loan "buyback" requests.The lender officially closed on Dec. 1. Its website now contains a message confirming the shutdown. A Sebring official recently denied to National Mortgage News that the lender was going out of business. Sebring senior vice president Mike Waldron told MortgageWire Dec. 7 that Sebring's failure is due to "a combination of factors." He declined to elaborate, saying "it's a sad time for the company. A lot of people here worked very hard for its success." The lender employed 325 but is now down to a "skeleton crew," Mr. Waldron said. Sebring was 10 years old as a company and used warehouse lines of credit to fund production. Mr. Waldron declined to name its warehouse lenders or investors that bought its whole loans. (See the Dec. 11 issue of NMN for more details.)