Publicly traded loan processor Mortgage.com will lay off 518 of 618 employees and is leaving the online lending business.
The company's Web site reported that “Mortgage.com is not currently accepting new applications.” It is referring customers with questions about ongoing applications to an 800 number.
Mortgage.com, Sunrise, FL, has reported that it will sell its assets, including its current pool of mortgage loans, its URL and loan-processing software.
The company's shares plunged after the announcement to 6 cents. Shares were trading before the announcement at 38 cents and as high as $13.31 in the past year.
“We are extremely disappointed that we have not been able to raise sufficient capital to reach profitability,” said Seth Werner, chairman at Mortgage.com. “The online mortgage industry has not been able to demonstrate its ability to deliver cost-effective mortgage loans to consumers at a profit.”
