Central States Mortgage, Wauwatosa, Wisc., which provided residential origination services to more than 250 credit unions, shut its doors on March 9th.
Central States employees learned of the closure when they reported to work Monday morning. They were greeted with a note on the door saying the company had suspended operations.
When Will and Lisa Schmidt, Central States customers from Bayside, came to the office Monday afternoon, they told a woman who unlocked the door that they hoped to modify the terms of their $217,000 adjustable-rate mortgage, Lisa Schmidt said…..
The employee responded, “Oh, we’re not going to be doing that.”…..
“It was like we’re living a movie,” Will Schmidt said…..”A real bad movie,” Lisa added.
As a mortgage broker, Central States provides mortgages largely to customers of its member credit unions. Most of the loans are quickly sold to others on the secondary market, though Central States may service those mortgages for a fee.
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