Hot off the presses, (I’m not all that surprised by the development), but People’s Choice Home Loans here in Orange County filed for Chapter 11 bankruptcy protection today.
News Came from Matthew Padilla’s Blog (covered by Mary Milbourn):
The subprime implosion continued today as People’s Choice Home Loan in Irvine became the second Orange County subprime lender to file for bankruptcy. The company filed Chapter 11 bankruptcy papers in federal court in Santa Ana today. Wire services reported that the company listed more than $100 million in assets and liabilities. The company’s website said it has 1,150 employees nationwide.
Also mentioned was ResMae, Ownit, MLN, … hmmm… ACC laid off 3000… Sounds like the Spring Smackdown is in full swing.
And, let’s not forget the good news. Surprising as it may seem, but San Digo based Accredited Home Lenders (LEND) has secured financing for their cash crunch situation. At 13%… whoah, sounds like the loan sharks are getting sharked themselves. I wonder if it has a prepayment penalty?
Any estimate yet on the number of jobs lost in OC due to lender layoffs? An acquaintance says even the people left are being told to start looking for jobs. They are all looking for “A” paper jobs. Good luck. I’m sure there are a lot of employers looking for people from the sub-prime industry. Everybody makes $250K to $500K in OC. Don’t believe me? Check the loan apps.
I have looked to find some measure, but the California department of Labor doesn’t make all of their information available.
Anyone else know of a good source, or just track it here?
Chuck Ponzi
I recently interviewed about 4 people for an IT position. All from the OC subprime industry. By talking to them, sound like a mini exodus for the doors. Problem is these guys were accustomed to high salaries and not very flexible when it comes to $$$. Stll in denial like homeowners about the bubble,