Ownit Mortgage Solutions Inc. has closed its doors, leaving more than 700 workers at 15 branch locations around the United States out of work.

The Agoura Hills, Calif.-based subprime lender, which originated $8.3 billion in loans last year, was unable to obtain funding to continue issuing loans, news reports said.

In a statement, the company said Merrill Lynch & Co., which owns 20 percent of Ownit, forced the closure by cutting off funding on Dec. 5, the Los Angeles Times reported. A Merrill Lynch spokesman told the Times and Bloomberg News that statement was misleading but declined to elaborate.

Ownit’s chief executive officer, William Dallas, co-founded First Franklin Financial Corp. in 1981 and bought Ownit with a group of investors in 2003, Bloomberg reported. The company originated $5.46 billion in loans in the first half of 2006, up 44 percent from 2005, according to the industry newsletter Nonprime News, Bloomberg reported. Those numbers made Ownit the 11th-largest subprime lender in the United States, news reports said.

Last week another subprime lender, Texas-based Sebring Capital Partners, unexpectedly closed its doors after a major investor reportedly stopped funding the company’s loans and it was unable to find a buyer.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription