Print

Email story

Comment

Letter to the editor

Clearwater mortgage broker shuts its doors

Bankruptcy filing leaves workers in the lurch.

By HELEN HUNTLEY, Times Staff Writer
Published March 8, 2008

Global Mortgage Inc. of Clearwater shut down operations this week and filed for bankruptcy liquidation Friday.

At its peak, the mortgage broker had 2,200 employees with 38 locations in about 40 states. At the end, there were closer to 600 employees, said Joseph Schafer, former director of operations.

"A lot of people left after not getting paid," he said. "I was hearing heart-wrenching stories on a daily basis. There are a lot of people unable to feed their families. Rents weren't paid for three months and there were bounced checks all over the country."

Schafer said the company's owners, Scott and Debra Losch, fired him last week. He said he is trying to help other former employees find jobs with other mortgage brokers.

The Losches could not be reached for comment.

Business declined as tighter lending standards and falling home values made refinancing impossible for many homeowners, Schafer said. In addition, he said the company faced large legal expenses.

The bankruptcy filing says Global Mortgage has liabilities of between $1-million and $10-million, and assets of less than $500,000.

Losch also is president of another defunct Clearwater mortgage company, Business Mortgage Inc., which filed for bankruptcy in October. A creditor in that bankruptcy case claims Losch transferred assets from Business Mortgage to himself or to Global Mortgage or other companies. American Interbanc Mortgage filed a claim against Business Mortgage for $49-million based on a legal judgment.

Helen Huntley can be reached at hhuntley@sptimes.com or (727) 893-8230.

[Last modified March 7, 2008, 22:45:21]