E-Loan Exiting Mortgage Industry

This morning the parent of E-Loan, Banco Popular out of Puerto Rico, announced their earnings, which were a net loss of $668.5 million for the quarter ended September 30, 2008, compared with a net income of $36.0 million in the same quarter of 2007. The company also announced additional actions in the restructuring of its U.S. operations:

“We remain well capitalized and have raised liquidity to meet obligations through 2009. We are focused on the profitability of our U.S. operations and we will be taking additional steps to further reduce expenses and to close or consolidate unproductive branches,” indicated Richard L. Carrion, Chairman of the Board and Chief Executive Officer of Popular, Inc.

Apparently this means the winding down of E-Loan. Employees have been given 60 days’ notice of layoff, and that E-Loan will cease operations in early January. According to one source, their processing staff will remain to wrap things up.