Mortgage Co. Hits Ch. 11 With $500 Million In Debt After Layoffs

By Vince Sullivan (June 30, 2022, 10:15 a.m. EDT) – Mortgage lender First Guaranty Mortgage Corp. filed for Chapter 11 protection in Delaware on Thursday days after laying off hundreds of employees, listing a debt of $500 million or more in its initial filings.

First Guaranty said in a statement that it was experiencing cash flow problems due to a tight refinance market and mortgage origination due to dwindling home inventory.

“While we have made significant efforts to address our financial challenges related to the state of the mortgage market, ultimately we must do what is best for our borrowers and our consumers,” CEO Aaron Samples said in the press release. “After…

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