Tribeca Lending Suspends Origination -

Tribeca Lending Corp. (Wholesale) - Wholesale

2007-11-16

stories: reuters.com
Although the announcement is dated today, Tribeca Lending shut down November 15,2007. Getting no response on the phone, we called their Retail Division. Retail said "We can't transfer you... there's nobody there."

"Nov 15 (Reuters) - Franklin Credit Management Corp (FCMC.O: Quote, Profile, Research) said it suspended acquisition and origination of new loans as it reviews reserves for its portfolio of acquired loans amid deteriorating real-estate and mortgage origination credit markets.

The specialty consumer finance company said its lead lender bank suspended funding for new loan acquisition and origination activities. The company said it could face insolvency if it could not reach an agreement with the bank and debt covenants are violated."

We understand they were known as NY Mortgage Company before Tribeca. They did borderline hard money. Low LTV Bankruptcy buyouts, and foreclosure bailout type loans.

Here's the announcement emailed to Brokers:


Announcement 07-25

Date: November 16, 2007

To: Lending Partners

From: Tribeca Wholesale Administration/Products

Re: Suspended Loan Originations

------------------------------------------------------------

Suspended Loan Originations

Franklin Credit Management Corp, parent company for Tribeca Lending Corporation, has suspended acquisition and origination of new loans. If you have received this fax/email in error or no longer wish to receive this fax/email, please contact Tribeca Lending at brokerlock@tribecalending.com

From another reader:

"Tribeca Lending has been letting go a lot of their employees. In fact they just closed one of their branches and released the duties of the 2 managers (1 quit and the other is an AE in NJ).

They use to do 75 LTV and have a no doc program, but now can only go up to 65 LTV, all full doc with a max loan amount of 417k and can not fund more than 20 Mil.

The NJ branch can no longer do NJ loans and the employees are declining."