Wisconsin Lender Fails to Find Buyer, Will Liquidate

Nonbank lender Universal Mortgage of Wisconsin is closing down after failing to find a private equity investor willing to pump capital into the $4 billion servicer. In an interview with National Mortgage News, company president Ron Huiras confirmed that a "sale did not go through," adding that, "We'll be winding down the operation." He said the nonbank was hurt by loan buyback requests from secondary market investors. "Buybacks were part of the problem, absolutely," he said. He declined to elaborate further. Investment banking sources said at one time Phoenix Capital of Denver was shopping around the company and/or its servicing portfolio. At press time Phoenix had not returned a telephone call about the matter. Mr. Huiras has had a long career in mortgage banking, including a stint as a top executive at Fleet Mortgage. The company is hoping to place some of its workforce at other shops, said one source. "It's a shame," said this source. "They were a good shop. Some of these buybacks were on loans that were two and three years old. And some of these loans weren't even delinquent."