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 Posted - 08/26/2008 : 1:07:38 PM
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Carteret Mortgage Will Close, Chief Executive Weinstein Says
By David Mildenberg
Aug. 26 (Bloomberg) -- Carteret Mortgage Corp., a closely held mortgage broker that originated more than $4 billion in loans in 2006, plans to close in several weeks, said Chief Executive Officer Eric Weinstein.
``We ran out of money,'' Weinstein, 49, said in an interview today. ``We're not technically out of business yet, but we're winding it down and trying to do the best we can for everybody.''
``You should definitely seek other employment immediately,'' Weinstein said in an e-mail today to the employees. ``I would expect that you have about 30 days to close your loans before it starts getting bad,'' he said, signing the note ``Eric `Shut the Lights' Weinstein.''
Foreclosures are expected to hit a record 2.5 million this year and next, according to the Mortgage Bankers Association, cutting demand from investors who buy mortgage-backed assets.
Weinstein founded the company in 1995 and expanded to more than 4,500 employees by 2003 when annual loan volume peaked at more than $4.7 billion. The company's business model allowed employees to work from home and earn income by recruiting and managing other workers, Weinstein said.
-- Editors: William Ahearn, Rick Green
To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net
``You should definitely seek other employment immediately,'' Weinstein said in an e-mail today to the employees. ``I would expect that you have about 30 days to close your loans before it starts getting bad,'' he said, signing the note ``Eric `Shut the Lights' Weinstein.''
Foreclosures are expected to hit a record 2.5 million this year and next, according to the Mortgage Bankers Association, cutting demand from investors who buy mortgage-backed assets.
Weinstein founded the company in 1995 and expanded to more than 4,500 employees by 2003 when annual loan volume peaked at more than $4.7 billion. The company's business model allowed employees to work from home and earn income by recruiting and managing other workers, Weinstein said.
-- Editors: William Ahearn, Rick Green
To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net
More than 100 lenders that have halted loans, closed or sold themselves over the past 18 months amid the worst housing market since the Great Depression. Weinstein said the Centreville, Virginia-based company has about 800 employees, including 40 at headquarters.
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