On June 30, 2022, Plano, Texas-based mortgage lender First Guaranty Mortgage Corp. (“FGMC”), filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10584). FGMC reports $500 million to $1 billion in both assets and liabilities. According to a press release from FGMC, the filing has no impact on closed mortgages and FGMC is finalizing DIP financing that will enable it to close and fund approved consumer loans, under existing terms and conditions. In addition, FGMC has further identified one or more potential partners to provide optionality to support the pipeline of in-process loans. FGMC also says that the bankruptcy has “no impact on closed mortgages” and that it is in the process of developing an employee incentive and retention program.
Cole Schotz does not represent the Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtor’s counsel.
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