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Quality Home Loans hit by fallout
Agoura Hills wholesale lender seeks protection
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STORY TOOLS 
More from BusinessNo minimum credit score. Fast and easy approvals. Interest only.
It wasn't long ago that mortgage lenders were touting these catch phrases to lure customers.
But the meltdown in subprime loans and tightening of qualifying standards have decimated the industry.
Quality Home Loans, a wholesale mortgage lender in Agoura Hills, is among the latest companies to be hit by the fallout. The company filed for Chapter 11 bankruptcy Aug. 21 in U.S. Bankruptcy Court in the San Fernando Valley.
The bankruptcy petition lists assets in the $1 million to $100 million range, with liabilities upward of $100 million.
A major subprime lender, Quality Home Loans has from 1,000 to 5,000 creditors, and expects that funds will be available to pay unsecured creditors.
The company said in an e-mail that it is temporarily unable to fund loans and expects to resume funding shortly, according to Mortgage Lender Implode-O-Meter, a Web site that tracks ailing lenders.
The company is in the process of reorganizing, which has "resulted in a temporary inability to fund loans," according to the site.
Quality Home Loans confirmed that the information was sent out in an internal e-mail, but said it should not have been released to the public.
The company did not respond to several phone calls seeking comment.
Quality Home Loans also does business as Clear Credit Capital, Last Chance Home Loans, Last Option Lending and QHL Investments.
Three of the company's affiliates, QHL Holdings Fund Ten LLC, California TD Investments LLC and Golden State TD Investments LLC, also filed for Chapter 11 protection.
Quality Home Loans still advertises "hard money loans" on its Web site, even to people facing foreclosure or bankruptcy.
— The Associated Press contributed to this report.
Posted by SmashyCrashy on August 30, 2007 at 1:10 a.m. (Suggest removal)
These companies weren't real businesses at all, their structure could only survive during an irrational boom giving away other peoples money. They are the tulip growers of the modern day.
Posted by desdave on August 30, 2007 at 6:34 a.m. (Suggest removal)
If you have to resort to financing thru a co. called Last Chance Loans, or Last Option Lending, maybe you should rethink whether you should be buying a house in the first place. Those names crack me up....they should have used something a little more upbeat like Warm and Cuddly Loans or something.
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