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Sandra Yi reporting Hundreds of Utah homeowners are out of luck, after a mortgage company shut down overnight.
California based Capitol Commerce Mortgage locked in record low interest rates, it couldn't make good on.
The company's employees sent out this memo to brokers this morning. It announced the news of a mortgage meltdown.
Spencer Reynolds: "I'VE NEVER SEEN IT HAPPEN. I'VE NEVER SEEN IT HAPPEN LIKE THIS."
Without notice... a mortgage company is out of business today, closing all of its branches, including this one in Salt Lake County. The sudden shut down as hundreds of loans are still in process.
Kristie Howell-Peterson: "WE LOST OUT."
The news was devastating for Kristie Howell Peterson. Record low interest rates prompted Peterson and her husband to refinance their home. In July, their broker locked in a 5 and a quarter percent rate with Capitol Commerce Mortgage- - lowering the couple's house payment 3 hundred dollars a month.
They bought a new truck with the anticipated savings.
Kristie Howell-Peterson: "WE'VE BEEN WAITING FOR SIX WEEKS TO GET THIS RATE AND ALL OF A SUDDEN TODAY, WE DON'T GET THIS RATE NO MORE."
Kristie Howell-Peterson: "I WAS IN TEARS. I COULD NOT HOLD ONTO MY PEN AT WORK. I WAS JUST HEARTBROKEN."
This memo from company staff to brokers says: 'C-C-M-C is not in a position to provide any level of service on your loan applications.' And 'This information was not given to us until last night when all managers were contacted and told the news of our company's sudden demise.'
Why C-C-M-C shut down is unknown but one broker tells Eyewitness News the company's Salt Lake branch secured 78 million dollars in loans in July. He and his partner had 10 loans ready to close by Monday.
Spencer Reynolds, American Residential Home Loans: "WE'VE GOT A FEW CUSTOMERS AND EVERY ONE OF THEM, WE'RE JUST GOING TO HAVE TO SAY, 'WE'RE SORRY, THE INTEREST RATES HAVE GONE UP FROM THE TIME WE'VE HAD YOUR LOANS LOCKED AND THEY'VE GONE UP SIGNIFICANTLY FROM WHEN WE HAD YOUR LOANS LOCKED AND THERE'S NOTHING WE CAN DO ABOUT IT."
Calls to the company's corporate office were not returned. The company's website was also down today.
As for customers - they can file a complaint with the Department of Commerce. Kristie Peterson says she's considering a lawsuit. In the meantime - - she's just hoping interest rates go down again.