Connecticut-based Promontory MortgagePath has announced plans to close its doors for good, citing current market conditions. A specific date was not announced and one employee reports ongoing employment.
“As a result of the unprecedented and rapid mortgage market deterioration, rising interest rates and a decline in loan applications – and following an exhaustive process to evaluate all viable options – Promontory MortgagePath has made the extremely difficult decision to cease doing business at this time," a company spokesperson said in an email Wednesday. ”Promontory MortgagePath is proud of its history of taking a mission-driven approach to supporting community banks and the communities, customers and markets they serve. We sincerely appreciate the dedication of our employees for their contributions to create a more inclusive mortgage market by providing a simplified, efficient and cost-effective solution that benefits both consumers and the community-oriented institutions that serve them.”
An employee who requested anonymity, said Wednesday that they were notified on Monday of the plans to close, but were not given any other details. The employee said that they had not been terminated yet, but added that the company had conducted another round of lay-offs in the last six to eight months.
The spokesperson did not respond to follow up questions about how many employees were affected by the decision to close or when it would occur. The company’s general voicemail message box was full on Wednesday and calls were not answered.
According to the Promontory MortgagePath website, the company was founded in 2015 by Eugene Ludwig, a former federal regulator and banker, who served as U.S. Comptroller of the Currency under President William Clinton, before becoming vice chairman and senior control officer of Bankers Trust/Deutsche Bank .
In 2019 Ludwig founded the Ludwig Institute for Shared Economic Prosperity, which is dedicated to improving the economic well-being of middle and lower-income Americans.
Ludwig did not immediately respond to a request for comment.
