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Mortgage Lender Lays Off Nearlyl 6,000
cts to retain only about 60 of its employees.
First Magnus officials said a bankruptcy filing was possible.
On Thursday, First Magnus announced that it had stopped originating new loans and was suspending operations.
Company officials said the lender was caught in the credit liquidity crunch now causing a meltdown in the mortgage industry, even though First Mangus was not engaged in selling "sub-prime" mortgages that sparked the crisis in recent months.
First Magnus, which calls itself one of the largest privately held mortgage banking operations in the country, funded more than $30 billion in loans in 2006.
The company's retail outlets include Great Southwest Mortgage and Charter Funding, recently renamed First Magnus Home Loans.