About 830 employees previously described as “furloughed” by troubled Mortgage Lenders Network USA Inc. are reportedly being laid off as the company continues to search for money to finance loans made by the company and resurrect its wholesale lending division.

Layoff notices to furloughed employees in Connecticut and four other states were sent on Friday, the same day state regulators ordered MLN to finance loans that the company made in December or face up to $7.6 million in fines, the Hartford Courant reported.

The Courant said the subprime lender has cut about half of its former staff of 1,800 workers, including 300 in Connecticut, where MLN is based.

MLN shut down its wholesale lending division on Dec. 29 after losing lines of credit used to make loans the company sold to investors in the secondary market. Company officials claimed to have reached a deal with Lehman Brothers Holdings Inc. to finance loans, and said they were shopping for a buyer for MLN’s wholesale division while continuing to operate a $19 billion servicing business and retail lending business.

The Courant said it obtained an e-mail to employees in which the company said it is in negotiations with an unnamed investor, but that any infusion of capital would come too late to avoid layoffs.

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
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
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