Rooftop Mortgages, US investment bank Bear Stearns' specialist lender, will close at five o'clock tomorrow afternoon.
Rooftop, which targets customers who find it difficult borrowing from a high street lender, made 40 redundancies and reshuffled 12 staff members last December as the credit crunch began to take its toll on the business.
The closure follows JPMorgan’s acquisition of Rooftop’s parent company Bear Stearns for just $10 a share last month after rumours led its liquidity pool to shrink.
Ginny Darrow, chief executive officer of Rooftop, says: “Market conditions have continued to deteriorate and with no signs of recovery in the securitisation and whole loan trading markets, which underpin our strategy, Rooftop’s origination business has become unsustainable.
“We are clearly disappointed and saddened to be taking this step and I would personally like to thank all of our partners for their support and friendship. We will ensure that the affected employees are treated fairly and looked after.”
Rooftop lends to about 50,000 people a month and has contacted its distribution partners about how to treat pipeline business. It aims wind up by the end of July after five years of trading.
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