First Magnus Financial Corp., a Tucson-based national mortgage lender, is stopping new lending activity effective Thursday and shutting down operations. An internal e-mail sent to branch managers of Great Southwest Mortgage, the retail arm of First Magnus, said the parent company was no longer funding loans. The e-mail was obtained by the Arizona Daily Star newspaper.
As some of the most creditworthy companies are having trouble accessing commercial paper, other lenders have been ordered by State Attorneys General to shut down. The State of New Jersey has ordered seven lenders to shut down because they could not fund their products. It is prudent to say First Magnus Financial was not effected in that manner.