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I was doing a quick search for a website someone told me about a while back because I couldn’t remember the URL. The site is the Mortgage Lender Implode-O-Meter and, for those who haven’t seen it, it tracks the mortgage companies that have gone under since, according to the website, late 2006.
I can’t say I’ve spent a lot of time on the site, so I can’t vouch for or against its quality, but it’s an interesting idea nonetheless. What’s even more interesting is this article from Inman Real Estate News about a libel suit against Aaron Krowne, the site’s owner, filed by The Loan Center of California, Inc., one of the lenders Aaron allegedly reported as “imploded.”
Apparently this happened all the way back in July of 2007, but no one I’ve spoken with in the industry has even heard about it, which I thought was odd. So, I thought I’d let the cat out of the bag, so to speak, and give a quick update on the case.
The Loan Center of California Vs Mortgage Lender Implode-O-Meter
The lawsuit was originally filed by TLCC as a result of an anonymous email posted at the Implode-O-Meter from an alleged former employee with TLCC, which painted a rather bleak picture of the future of the company. TLLC claimed that over $4 million in funding was withdrawn as a direct result of that email and filed a libel suit in response, claiming the company was in fine shape and Implode-O-Meter was at fault for the lost funding.
TLLC agreed to dismiss the lawsuit in December of 2007 with no monetary compensation, although Implode-O-Meter, according to the site, was out $40,000 in legal fees. That’s a hefty bill considering Implode won the case.
That’s the gist of the story; you can read more about it here, here, and here.
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