Washington-based subprime lender closes doors

Wholesale lender Mortgage Investment Lending Associates Inc. has closed its doors and laid off 300 employees.

The Mountlake Terrace, Wash., company specialized in subprime loans, using an automated online system that provided mortgage brokers with fast commitments on loans that were bundled for sale to Wall Street investors.

Incorporated in 1989, MILA employed about 700 people in 2005, but began cutting its workforce the following year, and attempted to move into prime and Alt-A mortgage products, The Daily Herald of Everett, Wash., reported.

Founder and Chief Executive Officer Layne Sapp sent employees an e-mail Friday, announcing the company was closing its doors "due to ongoing negative market conditions," the Herald reported.

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