Orange-based mortgage lender Master Financial Inc. has stopped funding loans brought to it by brokers.
The company, formed in 1981, said it stopped accepting new applications for loans from brokers and is no longer funding loans in its current pipeline.
Master Financial funds subprime loans to borrower with poor credit and Alt-A loans to those with slightly better credit.
The decision was “due to the rapid change and instability in mortgage industry,” the company said on its Web site.
Master Financial will continue to service mortgage loans and maintain its customer service line for borrower inquiries, it said.
“Taking this course of action will allow Master Financial the potential to re-emerge from the market correction a better, stronger company,” the company said.
