A subsidiary of Washington Mutual, Long Beach Mortgage is one of the nation’s leading subprime mortgage lenders, originating, purchasing, and selling subprime residential mortgages. The company’s customers are individuals who have unfavorable credit histories, high debt-to-income ratios, or other issues that make it difficult for them to obtain mortgages through traditional channels. Long Beach Mortgage, works through a nationwide network of independent loan brokers, usually sells its loans into the secondary market, retaining the servicing rights.
Loans Funded by Long Beach Mortgage Co.
- Home Equity Loans
- Refinance Mortgages
- 2nd Mortgage Loans
- Debt Consolidation Loans
- Home Equity Lines of Credit
- Bad Credit Mortgage Loans
Long Beach Mortgage has been building strong relationships in the Specialty Lending industry since 1987. Joining the Washington Mutual family in 1999, they created a Specialty Lending powerhouse. Together, in 2001, they funded $176 billion in residential loans. This combined strength positions the company as the leading lender across all of the markets they serve.
The companies fees are among the lowest in the industry and are complemented by a lender and broker compensation cap of 5%.
They have set the standard in the Specialty Lending industry by instituting corporate guidelines and policies to uphold their commitment to responsible lending.
Long Beach Mortgage company is happy to lend to lower income and disadvantaged borrowers, and their beach themed advertisements have been popular and successful. Before being acquired by Washington Mutual, the company was part of Ameriquest. In fact, Ameriquest began as Long Beach Savings and Loan in 1979, before moving to Orange county in 1991 and converting to a pure mortgage lender. Then in 1997 Long Beach Mortgage became a subsidiary of Washington Mutual.
Long Beach Mortgage has had to pay out some impressive sums due to court cases finding them guilty of gouging older, female and minority borrowers. Prosecutors accused the company of allowing mortgage brokers and employees to add fees totaling as much as 12% of the loan amount arbitrarily.
Other complainants have accused the company of refusing or failing to cash mortgage payments and using that failure or refusal as means to begin foreclosure proceedings on properties.
These are serious issues for a mortgage company to be accused of, especially since a large portion of their client base consists of older, female and minority clients. Although the lawsuit may have forced the company to change its ways, a degree of caution is advised when dealing with a company with a history like Long Beach Mortgage.
Being under the umbrella of Washington Mutual may also have changed their business practices. While Ameriquest, the previous owners of Long Beach Mortgage, have continued to receive legal attacks on the basis of their treatment of clients and borrowers, Washington Mutual is relatively clean. Hopefully Long Beach Mortgage has changed its ways now that it is part of the Washington Mutual family of companies.
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