A subprime mortgage brokerage that relocated to the city during the height of the housing boom has closed and is looking to liquidate in bankruptcy court.
MEM Financial Services consolidated its two Saratoga County offices and established a headquarters near the corner of State and Ferry streets in 2006. At that time, company president Mark McLeod promised to create 100 jobs within 18 months, but the housing boom peaked months later, followed by the implosion of the subprime loan industry in summer 2007.
“It’s a tough time to be in the mortgage market,” said MEM attorney Matthew Mann.
Around the time MEM moved out of its Halfmoon and Clifton Park offices, it employed 41 and the brokerage had generated $150 million in revenues since being founded in 1999.
The closing marks one of the Capital Region mortgage industry’s biggest losses since the August 2007 collapse of Guardian Loan Co., another Clifton Park subprime mortgage brokerage that employed more than 200 at its peak.
Before closing, McLeod moved MEM’s Schenectady operations to an existing office in Glens Falls.
In its Chapter 7 petition, which was filed today in U.S. Bankruptcy Court in Albany, MEM cited $848,000 in debts and $3,000 in assets. The 20,000-square-foot downtown building, which McLeod purchased individually and is trying to sell, is not listed as an asset in the petition.