AnnieMac purchased Family First Funding
AnnieMac Home Mortgage, a Mount Laurel-based nonbank lender has apparently purchased Family First Funding in Toms River. According to AnnieMac, Family First was experiencing liquidity problems, which led them to sell. Historically, restrictions on production funding, especially in a down market, have driven mergers and acquisitions, layoffs, and closures of mortgage companies. Family First is currently in litigation against Sprout Mortgage. Sprout Mortgage was a non-qualified mortgage lender and shut its doors abruptly last July. Family First sued Sprout Mortgage last May for defaulting in a $5.1million loan purchase. Family First and Sprout reached a $475,000 settlement. A telephone hearing was held Feb. 21. However, no final judgment was entered. According to court records, Family First filed no papers for the case. Family First lost an average of $2812 per loan in the fourth quarter. Marina Walsh, vice president of industry analysis at the MBA, stated that fourth-quarter results were “abysmal.” in a press release. “Basis-point revenues fell to levels not seen in the fourth quarter 2011. Production costs reached their highest level since MBA’s report inception. Production volume has declined for eight consecutive quarters. AnnieMac, formerly American Neighborhood Mortgage Acceptance Co. has made this acquisition. OVM Financial Team powered AnnieMac Home Mortgage was acquired by AnnieMac in July. This deal is similar to other recent deals that have been driven by changing industry conditions. Last month, Keller Williams, a real estate company, sold Keller Mortgage’s assets to Mutual of Omaha. However, it still holds an equity interest in the entity. CrossCountry Mortgage is currently involved in litigation against rivals loanDepot & Guild over allegations of loan officer poaching. Maria Volkova contributed to this report.