California Based Wholesale Lender Majestic Home Loan Reportedly Shut Their Doors On January 31st.
Posts on social media say RMK Financial who does business as Majestic Home Loan has abruptly closed.
Former AEs say the wholesale mortgage lender had to close their business due to a legacy issue.
Another former AE posted a similar comment the next day on social media.
However, neither one of the former employees offered any information about the legacy issue or offer specifics about the closing.
RMK had seen a nearly 70% drop in total loan originations since Nov. 1, 2022. This also included a nearly 84% drop in refinance volume.
It appears, the company laid off most of it’s 60 employees via Skype in mid-January. Afterward, the company closed it’s doors on January 31st.
What the legacy issue may have caused the company to close is unknown. However, the company was fined by the CFPB in April 2015 for deceptive mortgage advertising practices.
At the time, the CFPB ordered RMK pay a civil penalty of $250,000.
The CFPB alleged RMK mailed deceptive print advertisements to more than 100,000 veterans and military personnel. Majestic’s solicitations used the logos of the Department of Veterans Affairs and FHA. The company did this to give the deceptive impression the mail was coming from the VA or FHA.
RMK sent its advertisements to tens of thousands of U.S. military servicemembers and veterans. They also sent them to homeowners with current VA loans.
Majestic’s website says they were licensed in 29 states and offered a full line of mortgage products. The company also stated they offered a proprietary loan origination system that provided innovation. Thus, allowing mortgage brokers the ability to track loan status in real-time. The company boasted that brokers could work directly with in-house origination and underwriting teams.
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