Chaptzem Blog!      

Sources tell me that they've made many layoffs of paid positions.

This is because the banks are cracking down on shady loans because homes were getting foreclosed left and right.

This is akin to what happened to the dot-coms in 2000.

 

any firm that would hire wannabe rebbe shimmy deutsch has no business being in business. fairmont are a bunch of crooks anyway.

 

Do you think that frum communities have more exposure to the turmoil in the subprime market? higher than average "no doc" and other subprimes offered in frum communities for obvious reasons. Upside is that we generally have more of a family network that can bail us out when deseperate and frum communities may have buyers that support the high valuations by mopping up the excess because there are limited communities to move to....

Anyone has a decent idea on actual foreclosures and delinquint rates for Fairmont and other frum loan originators?

 

It shouldn't be too hard to determine if they've had layoffs.

Any confirmation?

 

The real issue at hand is that Fairmont Funding is trying to NOT pay the salaries and commisions still owed to the employees and loan reps. They are the most crooked company in America and deserve for the top administration to go to jail. I recommend all employees to start a CLASS ACTION LAWSUIT !!!.

 

******NEWS-FLASH******

Rumor has it, that the US banking department is coming down heavy on a bunch of frum mortgage companies.

I heard that Ralph Hertzka is in deep dudy.

This is not hearsay bun confirmed informatzia.

 

I am an employee and i got paid last week so i do not know where the person is getting his/or her information from.

 

Fairmont is now a mortgage broker. They fired everyone because they are not needed in order to operate as a mortgage broker. They were needed when Fairmont was a Direct Lender.
Fairmont is still open for business.
Fairmont is paying loan officers comissions.
Fairmont closed up as a Direct Lender because there Warehouse line was closed, just like many other lenders. Many lenders have already closed, many more will be closing in the coming weeks.
Example: new century, first financial, freemont etc the list can go on and on.

For all those of you who cant stand seeing other people making money. YES FAIRMONT IS OPEN FOR BUSINESS.

 

anon 10:22,
why was their warehouse line closed? What does warehouse line mean? why do you say that more lenders will close in the following weeks? Please elaborate.

 

how can i get in touch with those brokers that were laid off? i would like to talk to them.

 

Is the same thing going to happen at Eastern?

 

In the mortgage business, there are Mortgage bankers and brokers. A broker submits loans to banks, and when the banks approve it, they just get a commission. Aa a banker, they can approve their own loans, and in most cases, after making their upfront fees, they resell the mortgage on the open market. The source of the money came from wholesale lenders, similar to a retail business, where a store buys from a wholesaler and resells.
The wholesalers are currently being squeezed, due to many larger mortgage companies, that have a large percentage of foreclosures. The wholesalers are therefor scaling back.

This has nothing to do with Fairmont, and it had nothing to do with their business practices. This has to do with a general change of the mortgage business.

Reading the posts on this site, I am amazed how many people have diahreah of the mouth, and talk nonsense.

Chaptzem, I suggest you contact someone at Fairmont directly, and get the stroy straight, without spreading hearsay and loshon hora.

 

What's going on with Gross?

 

Fairmont has employeed hundreds of families over the past years. Due the trend of the mortgage industry , Fairmont has been forced to follow the industry trend of cutting down its back office to keep up with today's market. Let's be makir tov for the parnassah that was brought to many families of klal yisroel over the years & for the families fairmont continues to support. As we see from todays market it's all a trend ....Fairmont is open as Brokers. Business is welcome as usual. Fairmont continues to cater to your residential, commercial & insurance needs. Fairmont has opened & continues to open opportunities and its doors for many Frum families. Lets all daven that all mortgage companies owned by Yidden continue to suceed. Hatzlacha to everyone: may we all be blessed with much mazal & bracha in all that we pursue.

 

Isaac Gross is up next.

Watch out hertzka. he's gonna send another schvartza on a bicycle to shoot you.

 

Fairmont is still open for business, employees are still getting paid and Loan Officers are receiving their commissions. They’ve not lost their banking status; they just temporarily discontinued doing (as a lender) non-conforming loans until the overall mortgage market is getting back on track.
Now I know how misleading all the blogs are.

 

I currently work for Fairmont Funding. I have been here for the past 6 years and will continue to stay here.
The company made a recent business decision to switch their operation to become mortgage brokers and not their use banking license for the time being. They are still NY licensed mortgage bankers and will continue to be.
Regarding the layoffs, because of the switch from bankers to brokers the company no longer has a need for the overhead of a banker. The company is paying its workers their salaries and is paying its loan officers their commissions. Fairmont is not filling for bankruptcy and is not closing up shop. A lot of you people who don’t know what they are talking about and do have ‘diarrhea of the mouth’ should contact Fairmont and get their facts straight.

 

The real story behind Fairmont Funding:

Introduction

In general a mortgage banker don’t need as much of their own funds in order to operate as a mortgage banker, you can borrow it; the place who is lending the funds for the bank is called the warehouse lender, the bank has to put up to 3-5% of the total amount they borrow.

Being a banker gives you the authority to set your own lending standers, after the loan closed the bank has to pay off the warehouse lender within 30 days. The bank will sell the loan on the secondary market with a profit margin and pay off the warehouse lender.

Most of the investors have their set of guidelines of what they will buy on the secondary market.

In the agreement between the bank and the investor, the bank has to take responsibility that the borrower will make his/her payments for up to 3 mounts, and if the borrower is in default in the first 3 months the bank has to buy back the loan.

The warehouse lenders became strict when a loan is not getting paid off right away, they have access to the banks operating account and when a loan is getting older they take out more then the initial 5%, (when a loan reached 120 days they will take out 100% of the loan amount and the bank will have to put up the entire amount of their own pocket)

What happened?

Fairmont closed and sold loans on the secondary market and some loans went into default within the first 3 months as per the agreement Fairmont had to buy back the loans however they didn’t had the money to buy them back, It is now in litigation and it may take years of better battle in court to finalize it, in the meantime the investors stopped buying loans from Fairmont, Fairmont closed loans based on the guidelines of those investors, now that those investors are not buying anymore loans from Fairmont it was stuck on the warehouse line.

The warehouse lender started to put pressure on Fairmont to take it off the warehouse line, and since they didn’t have the money to buy it out, the warehouse lender froze Fairmont’s account.

Fairmont doesn’t have access to money so they can’t lend however that didn’t violate any law and they don’t have any legal issues with any government agency; they are still licensed and will continue to do business as a broker for the time being and once it is settled they will operate as a banker hopefully soon.

If you have any questions you can email me at fairmontfunding@hotmail.com

 

The word on the street is that GFI will be taking over the rest of Fairmont's residencial Mortgage business.
Looks like all the yidden are going to have to find the next quick buck
Day trading....mortgages... whats next? porn?

 

Charles Katz was taking money that he had to buy back the crappy loans with ,from the their Insurance dept.
So now the people working for Insurance will get screwed also.
He would have taken Money from Capital but they havent closed any loans yet ,and are 500k in debt from cheesy adds in the yated.

 

Its funny how the anonymous commenter at April 29, 2007 12:56 PM states “They’ve not lost their banking status; they just temporarily discontinued doing (as a lender) non-conforming loans” and then states “Now I know how misleading all the blogs are.” You must know from first hand experience. Below is a link to the New York State Banking Department website that indicates that Fairmont DID lose their license, on March 7, 2007.

http://www.banking.state.ny.us/wb070316.htm

 

Rumors about GFI....GFI offered to take in a few salary fairmont people that were layed off.
Fairmont is not being taken over by GFI.

 

all that website mentions are some locations they are not operating out of. They have many other locations they are doing banking business out of.
Before you write something, read it correctly and than post.

They are a great company,I have done lots of business with them, residential and commercial and will continue to do so.

 

If you read the link to the website you provided....its says Fairmont closed those individual BRANCHES!!!! No were does it say Fairmont as a whole company lost there lending license.
Shucks, just busted your buble.

 

Veganovich....Nice try. Maybe read before you put lies out on this site. As the previous posters say, all it shows is that some branch offices closed down and Fairmont voluntarily gave the license for those offices ONLY!!

 

i know people with 10+ years that were let go.

 

they are telling the rest of the loanofficers to stay and they will be brokers instead of bankers.
It may put a bandaid on things for a few months,but when your in 40 million dollars of debt there is no way out.
They are trying to salvage as much business as they can before they declare bankruptcy.
anyone with a family to feed should have enough brains to get out before the boat is completely under water.

 

Where are you getting the info that they are $40 million dollars in debt?

 

That does not make any sense, anyone in the the mortgage industry knows that can't be so.

 

The 40 million is not debt. It is loans that they are obligated to repurchase but they can’t. As I wrote in my yesterday “it may take years of better battle in court to finalize it”

There are working hard in cleaning up the warehouse and their money will be available once the line is paid off, you are talking of over 5 million dollars of Fairmont’s money.

Once the warehouse is clean they will open their lending division and be stronger then ever.

If you have any questions you can email me at fairmontfunding@hotmail.com

 

Public records- Countrywide 35 million of loans that they are not buying from them.
and 5 million from greenpoint and a few other lenders.
When you cant sell your warehouse line ,you get stuck holding the bag.
anyone who is in the mortgage industry understands how screwed fairmont is. Its unfortunate that so many frum people have been laid off, but the writting is on the wall ,they will file bankrupcy and they will close all the offices they have. People who are working there now should already understand this ,and not be convinced to stay on as mortgage brokers. back office people should find new jobs immediatly.
no company can pull themselves out of this terrible situation.

 

I'm currently employed by Fairmont and have been for the past 5 years. We never sold loans to Greenpoint... BTW what public records are you talking about...?

 

who ever is writing this stuff is clueless. this stuff is not on public records.

The residential mortgage company is fully functioning and closing deals,

Just as always.

 

so for all of the bored, hopeless souls who have nothing better to do than bash other good, honest and hard working jewish people.. here is some news. YOU SHOULD GO ELSEWHERE TO FIND SOME FUN. GET A LIFE. OR AT LEAST TRY TO. whichever of you low life losers announced on this site that fairmont is all a bunch of crooks, should perhaps do some soul searching themselves. you only prove to the world that YOU are indeed the angry, unaccomplished, jealous and good for nothing person that i am sure you are. if you find the strong need to pick on someone who has done you no personal wrong, and who all their lives have tried to keep out of peoples mouths...then you yourself are the one with the issue. you yourself are the one neck high in trouble. it is YOU who is drowning and deep deep in serious dirt. so go aheah and find someone else to bury because you hAve no business here.
first hand i can tell you that fairmont is run by honest and good frum people. they have always tried to welcome and care for their staff and employees. the situation at hand wil only serve to make them stronger and gd willing they will emerge even better to continue to serve our community.
so take you harmful wishing words and hang you head n utter shame.

 

Fairmont Funding WAS a GREAT company, the problem started when Mr. C. Katz CEO of the Company and other top management officials, empowered a young kid with the name of ABRAHAM BROWN to be Manager of Operations.

Over there started all Fairmont's problems, good employees left the company and/or were fired because of Abe Brown.

A very young inexperienced fellow, that got the trust of top management, and he slowly buried the Company.

Is a disgrace.

 

Do you think that Label Katz but a curse on his brother?

 

Name me 5 employees that were fired by Abe Brown. (I love those point blank statements.)

 

label curses everyone with his evil eye towards anyone with money!