Subprime Firm In OC beginning to collapse

The Orange Country Registrar has a great story about Quick Loan Funding -- largely famous as being an active player in the California sub-prime market and more importantly the founder Daniel Sadek is famous for having actor Eddie Griffith crash his Ferrari Enzo during a publicity stunt for his failed movie - Redline.

Those willing to wade through the article are more than welcome to read it HERE.
The article highlights one thing - much of the problem in the California sub prime market lies with the incredibly easy way it is to become a mortgage lender in California

Daniel Sadek played Orange County's subprime lending boom like a card shark dealt the ace and jack of spades.

Just five years ago he was selling cars.

Then, in January 2002, he anted up $250 for a state lender license and started selling home loans through his company, Quick Loan Funding.

That right $250 and a $25,000 surety bond and you can be a mortgage lender in California. It's more difficult to become a barber than it is to become a mortgage lender. Today Daniel Sadek has sold his fleet of exotic cars to keep his firm afloat. The staff has shrank from 700 to 125 and his loan volume has dropped to about 60 deals a month. In other words he's done. The firm had to buy back $29 million in mortgages last month (they are writing about $30 mil a month) with numbers like that his firm cannot last. Daniel's desperation was such that he has mortgaged every piece of property to the hilt to keep the firm going. Given the aggressive tactics used by Quick Loan Funding and the number of lawsuits they have currently (the number they will have as a result of the article. Articles like that always increase the number people that come out) - I just don't see this firm making it.