Secondary market player Athas Capital Group announced last week that it would exit its business with immediate effect.
The company’s decision to close its doors after 14 years in business expected the market to “get worse,” executives at the California-based non-QM lender said in a joint statement.
Alim Kassam, co-CEO of Athas, said in a statement: “Writing hangs on the wall regarding the significant challenges our sector will continue to face in the near future.
“Our outlook for the secondary market for non-prime mortgages is that volatility will continue, liquidity will become increasingly scarce or, worse, unavailable for a period of time, and loan sales premiums will fall below most firms’ production. It’s below cost,” he added.
Assus co-CEO Brian O’Shaughnessy added that by exiting the market now, lenders “can keep their businesses in order.”
Athas prioritizes that all warehouse partners are fully paid and ‘done right’ by ‘family-like’ employees.
The lender will honor all loans in its pipeline that are legally mandated to fund and will comply with all state and federal WARN notification requirements, the company announced last week.
Founded in 2008, Athas Capital Group has funded over 14,000 loans valued at over $5.5 billion since its inception. In just over a decade, Athas and its affiliates have raised his $475 million worth of revolving lines of credit from 13 different banks, according to a statement issued by the company.
“We would like to thank our brokers, borrowers, vendors, loan servicers, trading partners, investors, lenders and everyone who has worked with Athas in the past,” said Kevin O’Shaughnessy, the company’s Chief Operating Officer.
Assassin joins Mounting list In response to market volatility, mortgage lenders and service providers are rapidly downsizing or closing.