What We're Hearing

Once again, I have to ask: what is it with Long Island and FHA lenders? Late Monday FHA slammed the door on Premium Capital Funding of Jericho, which was doing business as TopDot Mortgage. The government permanently and immediately ripped the government eagle from TDM's loan menu. The company, it appears had stolen a page from Lend America's playbook by advertising heavily on TV (in multiple markets) using late night infomercials. (One source said the lender was spending $200,000 a month on TV ads.) And like Lend America (they of Melville), TDM has claim rates that are through the roof. (See theNational Mortgage News website early this afternoon for a full update on what went wrong at TDM.) But even though FHA shut them down on Monday, it appears the writing was on the wall last week. I received a tip that the company was about to layoff a large chunk of its staff in Long Island. Also, a mortgage firm in the area advertised for an underwriter position (just one opening) and according to one source familiar with the story, this firm received 50 resumes -- all from TopDot underwriters. One company insider told me this morning that TDM's owners "will fight" the FHA action. Perhaps, but will they hire Rudy Giuliani to do their bidding, which is what Michael Ashley over at Lend America did?...