Live Well Financial has confirmed on its website that it has ceased origination operations as of May 3, following information detailed to RMD last week describing that the firm would halt funding for new loans. The company has also filed paperwork with employment officials in the state of Virginia, detailing that more than 100 workers have been laid off as of May 3.
The notice now on Live Well’s front website page reads, “Due to unexpected circumstances, as of May 3, 2019, Live Well Financial, Inc. will cease to originate mortgage loans.”
Those with loans in process or who have questions about existing loans are encouraged to contact company representatives by phone or email, with the company stating it will make an effort to respond to all consumer inquiries within 24 hours.
The statement released on the company website accounts for the first official confirmation that Live Well is shutting down.
Live Well has also laid off 103 workers, most of whom were based out of its corporate headquarters in Chesterfield, Va. according to a document obtained by local newspaper the Richmond Times-Dispatch.
“Due to sudden and unexpected developments in the markets for certain financial assets the company uses as collateral for certain credit facilities that provide this liquidity, these lenders have reduced significantly the amount of liquidity they make available to the company,” wrote Paula Foster, Live Well Financial’s vice president, controller and human resources director in the notice to Virginia state officials.
“This reduction in credit availability combined with challenging conditions in the markets for mortgage loans, which were conditions outside of the company’s control, along with related regulatory issues, have resulted in the company having insufficient available cash to continue operations,” she wrote.
The notice also states that the circumstances leading to the layoffs were so sudden that the company did not have sufficient time to inform state regulators before needing to lay off the affected employees, which included company CEO Michael Hild according to Foster’s letter.
“Despite the company’s exercise of commercially reasonable business judgment, it could not reasonably foresee these circumstances and therefore was unable to provide 60 or more days’ notice of the closing and related layoffs, and instead is providing such notices as soon as practicable,” wrote Foster.
The letter also details that the closing and layoffs will be permanent, and that it will affect the company’s Virginia-based offices as well as “other Company offices outside of Virginia.”
RMD originally reported that Live Well had halted funding for new loans late last week. A former Live Well employee requesting anonymity described receiving notice that the company at-large would be ceasing operations as of May 3, including the discontinuation of both fundings and loans in process. Employees were not given advance notice of these changes, according to this person.
Wholesale partners were also informed that their loans in process would have to be submitted to another lender, affecting both forward and reverse loans.
Company executives have not returned multiple requests for comment.
Read the original RMD story for more.
