Another domino falls in the demise of the RE bubble...

Discussion in 'Economics' started by TheDudeofLife, Mar 4, 2007.

  1. -----Original Message-----
    From: Brian Daily
    Sent: Sun 3/4/2007 4:22 AM
    To: *Tampa 2 Office; *Tampa 1 Office; *ResRe Tampa 1 AE
    Subject: Fremont ceasing doing business.


    It is with great regret that I must inform you that Fremont Investment and Loan will cease funding loans and doing business.

    At 12:35 (pst) Saturday, Fremont General received notice from the FDIC that they are not permitting any more loans to be funded by Fremont. In short, our funding available was terminated by the Federal Home bank.

    The suddenness of the change and the shift from our communication literally less then 24 hours previously simply perplexes me. However, this simply validates the volatility on our business. None of us in Hawaii realized or appreciated the gravity of the situation we were facing.

    There are many questions that many of you have. There is a conference call that will be conducted on Monday that will answer many of these questions that you will have.

    Jerry Casanova will be able to communicate with you more specifics on Monday morning. Please show up for work to receive these instructions. I will be leaving the meeting here in Hawaii early and attempting to return to the office sometime on Monday.

    In order to assist our clients with some instructions- I have listed some Q and A's to assist you in your communications:

    Q: Do I continue to solicit loans?
    A: No. As of the 3rd, we are no longer sourcing new business.

    Q: Will I close what is in the pipeline?
    A: This will be clarified on Monday. I would suggest to sent back all loans to the broker

    Q: What do I tell the brokers?
    A: Fremont Investment and loan is no longer conducting business. Any files that are pending or have been submitted will be returned to you.

    Q: Will I get paid for the loans closed?
    A: Yes.

    Q: Does termination take effect immediately?
    A: Clarification on this item will be determined on Monday.

    Q: What about benefits and severance?
    A: This will all be clarified on Monday or the early part of the week.

    Everyone, I cannot tell you how sadly I am disappointed this industry has trended so deeply in this direction. You all have accepted me so warmly upon my arrival at Fremont and I will always cherish those relationships forever. At this point, I wish I had more information to share with all of you but I simply do not. My travel logistics are extremely complicated right now and hopefully I will have more information in the next 24 hours.

    So I do not lose valuable contact with any of you, please forward to Jo Haynes your cell phone, home phone and home address. I would like to keep this information as we begin to search for alternative strategies to consider.

    Will this play out like the dotcom bubble did?