Wednesday, August 22, 2007
and lays off 6000 workers
First Magnus Financial, one of the largest independent U.S. mortgage lenders, filed for Chapter 11 bankruptcy protection on Tuesday, the latest home loan provider to collapse as the housing market slumps and credit crisis widens. It said it laid off most of its nearly 6,000 employees on Thursday, leaving about 60 workers. First Magnus was the 16th-largest U.S. mortgage lender from January to June, originating $17.1 billion of home loans, according to the newsletter Inside Mortgage Finance.