Other mortgage companies affected by subprime lending woes.

1. First Magnus Finanical Corp:

Dozens of employees streamed out of First Magnus Financial Corp. on Thursday morning after being notified the mortgage company was being shut down.

Tucson was the national headquarters for First Magnus, which spokesman Gary Baraff said was the largest privately held company of its kind in America. He said the company processed loans to the tune of $30 billion in 2006 alone.

The company had 3,500 employees in 2005. In 2007, it had 5,500. It was named the second-largest private mortgage company in the country by Inc. 500.

2. Novastar Financial:

Subprime mortgage lender Novastar Financial Inc. said it plans to cut 500 employees, or about 37% of its work force, and close wholesale loan operations in California and Ohio because of an expected drop in new loans.
The Kansas City, Mo., company had warned last week that "extreme uncertainty and disruption" in the subprime market ...

3. Bear Stearns:

NEW YORK: Bear Stearns moved to cut jobs at two home-lending units because of the housing slump even as a 13% increase in shares of the fifth-largest US securities firm signalled that it may be close to getting a cash infusion from an investor. Encore Credit, a Bear Stearns subsidiary in Irvine, California, will eliminate 100 positions, a person with direct knowledge of the matter said on Thursday. Bear Stearns Residential Mortgage, based in Scottsdale, Arizona, is reducing its workforce by 140, according to the person, who declined to be named because the number of jobs isn’t being made public.