Orange County, California-based Mandalay Mortgage LLC has closed its non-prime wholesale loan business Mandalay Mortgage. The company released a statement on its Web site, saying they will no longer accept new loan applications, effective January 24.
Mandalay Mortgage said that “loans that have loan documents either out for signing or already signed will continue to be processed and funded, and all other loan applications will be returned.” According to the statement, the last day to fund new loans is January 31.

Mandalay Mortgage isn’t the only servicer pulling out of the subprime space. Wachovia Corp. recently announced the closing of its subsidiary Equibanc Mortgage Corp., a subprime lender based in Georgia