SCHENECTADY Mortgage broker files bankruptcy petition BY JAMES SCHLETT Gazette Reporter
A subprime mortgage brokerage that relocated to the city during the height of the housing boom has closed and filed for bankruptcy. Two years after MEM Financial Services established a headquarters near the corner of State and Ferry streets, it filed Friday for Chapter 7 liquidation in U.S. Bankruptcy Court in Albany. In early 2006, MEM President Mark McLeod came to Schenectady promising to create 100 jobs within 18 months. But the housing boom by then had peaked, and the implosion of the subprime loan industry followed in summer 2007. “It’s a tough time to be in the mortgage market,” said MEM attorney Matthew Mann. Around the time MEM moved from Clifton Park to Schenectady, McLeod employed 41 and his brokerage had generated $150 million in revenues since being founded in 1999. The company also operated under the Lending Factory moniker. The closure of MEM marks one of the Capital Region mortgage industry’s biggest single losses since the August 2007 collapse of Guardian Loan Co., another Clifton Park subprime mortgage brokerage, which employed over 200 at its peak. In its Chapter 7 petition, MEM cited $848,000 in debts and $3,000 in assets. McLeod purchased the 20,000-square-foot building at 202 State St., which previously housed the Spencer Business School. His budget to buy and renovate the building was $1.3 million, according to the Schenectady Metroplex Development Authority. Metroplex had offered MEM a $54,000 grant to offset the cost to lease parking for employees in a downtown lot. However, the brokerage never applied for that incentive. “Basically, as a mortgage broker, his business just dried up … The building is for sale now and it was completely redone,” said Metroplex Chairman Ray Gillen. MEM was licensed in New York and Florida. Utilizing more than 120 mortgage lenders, the brokerage offered purchase money and refi - nance, new construction and home equity loans for the conventional, jumbo, modular and manufactured housing markets. Before closing, MEM moved its Schenectady operations to an existing office on Warren Street in Glens Falls. MEM in March changed its mortgage brokerage certificate to the Glens Falls address, according to the state Department of Banking. Mann was not certain how many people MEM employed or when it closed. MEM in 2004 became a public company by purchasing Vision Real Estate Management in Albany. Three months after Metroplex announced MEM’s move to Schenectady, the brokerage announced Daniel Duffy had acquired a controlling interest in the brokerage. A news release announcing the deal said Duffy would serve as MEM’s chairman, president and CEO. But it also noted that the “operating business of MEM Financial Solutions in lieu of the Lending Factory has been renconveyed to the companies’ former president Mark E. McLeod.” “In the coming months our shareholders can expect to see a vast array of changes, including a name change, additions to the management team and implementations of a new business plan,” Duffy said in the March 2006 news release. The subprime industry collapsed less than 18 months later.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
MEM Financial Solutions Purchases Building on Lower State Street Jan 9, 2006 Schenectady, N.Y., January 9, 2006 -- MEM Financial Solutions, a fast growing mortgage company now headquartered in Halfmoon, today joined with Metroplex and Schenectady County leaders to announce that the company has closed on the purchase of 202 State Street. MEM Financial Solutions will relocate company headquarters to downtown Schenectady following rebuilding renovations. The company plans to create 100 jobs in Schenectady County in the next eighteen months.
“We are very excited to be moving into downtown Schenectady”, said company President Mark McLeod. “The new office space will allow MEM Financial Solutions to follow through with our expansion plans for 2006”. The company hopes to take occupancy of the new space by the end of the first quarter in 2006.
Susan E. Savage, Chair of the Schenectady County Legislature said, “Once again our economic development effort brings new jobs and new opportunity to Schenectady County. This is a great way to start another year of smart growth and job expansion. We welcome MEM Financial Solutions to Schenectady County.”
Schenectady Mayor Brian U. Stratton said, “This is a great way to begin 2006. Lower State Street is a priority for our redevelopment work this year and this project provides a great kick - off to our efforts.”
Gary Hughes, Chair of the County Legislature’s Committee on Economic Development said, “This demonstrates the willingness of the private sector to continue to invest in Schenectady’s recovery. In the past, this type of investment by a fast growing company would not have been likely. Now we are seeing more and more companies select Schenectady County for new investment and jobs. “
Mark W. Blanchfield, President of the Schenectady City Council said, “This is great news for lower State Street and the adjacent Stockade and East Front street neighborhoods, each of which offers numerous attractions and a convenient walk to work for MEM employees — current and future.”
Metroplex will provide a grant of $54,000 to help offset the cost of leasing parking spaces for company employees in the lower State Street area at the former MVP lot. The company will purchase the building and finance renovations on its own. MEM Financial Solutions is also eligible to apply for Empire Zone benefits and Renewal Community credits based on the company’s investment in Schenectady.
Ray Gillen, Chairman of Metroplex said, “With the Proctors Block of State Street almost sold-out, we are aggressively moving our redevelopment efforts to lower State Street. MEM Financial Solutions relocation to 202 State Street is a perfect fit with our plans and we are pleased that they have closed on the purchase of the building with plans to begin renovations almost immediately.”
202 State Streetis currently vacant. At one time, the building was home to the Spencer Business School. The two story 20,000 square foot building is located in lower State Street, an area targeted by Metroplex for redevelopment efforts in 2006. Larkin Commercial Properties Inc. handled the transaction for the seller of 202 State Street.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
More nonexistent jobs, more lies, another shady decision. Take a walk below Erie on State St (daytime only) and view the complete desolation. Looks like a neutron bomb went off. In short another great plan by horrible Metrograft Ray. Has he resigned in disgrace-YET?
Ok, so that makes exactly how many businesses that have either folded, went bankrupt or never opened? Ya know, it appears that Ray Gillen and crew are just walking against the wind with our tax dollar.
And may I remind everyone, that Mr. Gillen is actually still employed and retains his current job EVEN THOUGH he and the plex has failed miserably. In any other private sector job, he would have been long gone! Ray Gillen is nothing more than theGeneral Contractor for all of the chosen developers. As far as job creation....he gets the big GOOSE EGG!! The ONLY jobs he has secured is his own and the contractors while they rehab building after building after building!
And please let us not forget the BIG HOUSE. Everyone is still waiting!
So folks, for all of you who will choose Obama as our next pres and desire a democratic majority.....just look at Schenectady. THAT my cyber friends will be the condition of the entire country in the not so very distant future.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
How many thousands of jobs have left Downtown? Teflon Ray, and the worst part is that MEM left Downtown before the Chapter 7 AND IT WAS NEVER REPORTED. More imaginary jobs Downtown that politicians grab credit for that were never created.
Here's another story they don't want you to know. Parisi's Restaurant on Broadway is closing next week. When you help some and not others it creates an uneven playing field. And nobody cares. The Gazette will make up a phony "revitalization" success like they did on Van Vranken and try to down play it. There's no way to soft soap this. 3 major failures in 2 weeks and Ray must be held accountable. Ray must go-if he won't resign in disgrace fire him at the next County Bored Meeting.
It seems very few have been willing to criticize him. He is a consummate snake oil salesman!
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
Logged
More nonexistent jobs, more lies, another shady decision. Take a walk below Erie on State St (daytime only) and view the complete desolation. Looks like a neutron bomb went off. In short another great plan by horrible Metrograft Ray. Has he resigned in disgrace-YET?
