ST. PETERSBURG – Calling it “one of the hardest moments in my life,” veterans mortgage leader and Mortgage Investors Corp. chairman Bill Edwards announced major staff reductions Oct. 14 due to new government regulations making it “nearly impossible to offer veterans low-interest mortgages.”
MIC is a 75-year-old American company that’s veteran owned, veteran operated and exclusively helps veterans and their families refinance VA-guaranteed mortgages. Formerly the nation’s leading mortgage loan refinance company for veterans, MIC will continue to operate and remain open, as it has for three-quarters of a century, and will continue to service all its existing loans while stopping new loan originations.
“We’ve attempted to decipher all 2,300 pages of the Dodd-Frank Act,” said Edwards. “Our entire team has dedicated enormous energy to reviewing all aspects of the new regulations that are now coming into effect. Sadly, we’ve concluded that it’s no longer cost-effective for us to originate new loans for our nation’s veterans, nor do we understand how to implement these new government guidelines. What Dodd-Frank actually intended is one thing, but portions of the Act defy reason, fairness and common sense – and worst of all, it will cost veterans new low-interest rate home mortgages, and others their livelihood.”
“Today, I had to tell long-time employees – hard-working loan officers, veterans and marketing professionals who deserve our thanks and gratitude – that we couldn’t save their jobs. It was one of the hardest moments of my life.”
Edwards also announced that MIC would provide a severance package for MIC employees that includes more than $5.5 million for two-months’ pay, continued benefits and credit for accrued vacations.
MIC was founded in 1938, three years prior to America’s entry into World War II, as a privately-held mortgage banking firm. Originally headquartered in Toledo, Ohio, MIC first helped develop and finance Ohio’s subdivisions in the 1930s and 1940s before the post-World War II housing boom led MIC to extend its expertise to VA mortgages. MIC’s services have saved veterans and their families billions of dollars versus their original mortgage payments.
“Today, our nation’s veterans lost a critical lifeline to affordable, low-interest rate mortgages. Long-time, hard-working men and women at Mortgage Investors Corporation lost their jobs. And we ALL lost another round to government bureaucracy that discourages initiative, undermines competition and punishes success,” Edwards said.