Suburban Mortgage Shuts Down

Suburban Mortgage Inc, founded in September 1988, with 38 licensed mortgage loan officers according to most reports, has closed down. Its LinkedIn page is still up, and the phone seemed to be working but no one is answering the phone. The company website has also been shut down. According to some reports Suburban Mortgage executives sent an email informing employees about the decision to cease operations. There was no further explanation or detail provided. According to the same reports, Suburban Mortgage fired approximately 80 employees with absolutely no severance payment. They are expected to pay on the commissions that close through September. For the last 33 years Suburban Mortgage has been operating through representatives in Arizona, California, and New Mexico, with the branches in Casa Grande, Mesa, Peoria, Prescott, and Scottsdale.

Other companies recently cutting back or closing down were First Guaranty Mortgage Corporation, which laid off approximately 80% of its workforce and no longer was accepting new mortgage applications while filing for Chapter11 bankruptcy protection. In addition, Sprout Mortgage alerted its 300 workers that it was shutting down in a conference call on July 6. Due to the slowdown in the number of loans being applied for and issued, many companies are finding their pipeline of revenue being squeezed to a trickle.