The mortgage industry saw yet another major shake-up on Tuesday as Peer Street and its 14 affiliated debtors filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court. As part of the Chapter 11 filing, Peer Street will continue operations, though under the supervision of a court-appointed trustee.
The company had been struggling to operate due to a challenging mortgage market and difficulty in raising capital with venture funding. Despite challenges, many of the company’s loan originator customers continued to collaborate in the origination of new mortgage loans, though their volume was reduced.
Peer Street’s filing represents the latest blow to the mortgage industry, as companies have faced increased scrutiny in recent months due to low interest rates. In response to the latest developments, Peer Street’s CEO has stated that the company is committed to continuing to serve its customers and manage its operations responsibly.
Most Important Elements:
• Peer Street and 14 affiliated debtors filed for Chapter 11 on Tuesday
• Struggles to raise capital with venture funding
• Mortgage market challenge
• Continuing to operate under court-appointed trustee
• Company’s loan originator customers continue to collaborate in origination of new mortgage loans
• Represents latest blow to mortgage industry
• CEO commits to continue to serve customers and manage operations responsibly
You can read this full article at: https://www.housingwire.com/articles/crowdfunding-platform-peer-street-files-for-bankruptcy/(subscription required)
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