Mortgage Branch Meltdown from MortgageDaily.com

 Net branch companies are among the latest mortgage meltdown casualties, according to http://www.mortgagedaily.com/ -- the dominant source of online news for the mortgage industry.

Net branches are a form of organization that enable independent mortgage brokers to be part of a large organization. The structure provides brokers with fringe benefits, stronger wholesale relationships and a big share of the income they generate. The parent company also gets a piece of each branch`s earnings as well as economies of scale and more leverage with wholesalers -- especially operations with hundreds of branches.

But net branch companies have been struggling this year.

Premier Mortgage Funding Inc. filed for Chapter 11 bankruptcy protection earlier this month.

The Florida-based company`s owner blamed the filing on an overwhelming number of frivolous lawsuits.

"Lawyers keep coming like sharks," he told MortgageDaily.com. (http://www.mortgagedaily.com/BankruptcyPremier070907.asp?spcode=pr)

Oak Street Mortgage LLC also filed for Chapter 11 bankruptcy. The Indiana- based company was once growing so rapidly that it contemplated a public offering of stock that could have raised millions of dollars.

Oak Street was founded in 1999 and, at its peak, had 750 employees and estimated annual sales revenue of $58.4 million. (http://www.mortgagedaily.com/BankruptcyOakStreet061207.asp?spcode=pr)

Starpointe Mortgage`s CEO and founder informed employees through a companywide e-mail in June that they had until July 3 to close any loans in their pipeline and that the company was closing, a former executive told MortgageDaily.com. (http://www.mortgagedaily.com/ClosureStarpointe071107.asp?spcode=pr)

In North Carolina, Challenge Financial Investors Corp. agreed to pay $848,000 to settle allegations of poor supervision and controls in its mortgage operations. The state accused Challenge of soliciting and accepting applications by unlicensed originators. (http://www.mortgagedaily.com/LicenseLosses061307.asp?spcode=pr)

One of the first casualties this year was Central Pacific Mortgage.

The California-based company ran out of money in February. Central Pacific`s president was previously the chairman of the Mortgage Bankers Association. (http://www.mortgagedaily.com/ClosureCentralPacific022707.asp?spcode=pr)

Read complete net branch coverage at: http://www.mortgagedaily.com/NetBranch.asp?spcode=pr

About MortgageDaily.com

Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.

   CONTACT:
   Shaun Bartlett
   214.521.1300
   3811-700 Turtle Creek Blvd.
   Dallas, TX 75219

Source: MortgageDaily.com

CONTACT: Shaun Bartlett of MortgageDaily.com, +1-214-521-1300