I probably said too much the first time, and this will be my last post regarding this situation. I called Pete to make him aware of this post so if he can and wants to add then it's up to him.

Here's what I am able to say at this point because of some legal issues that prevent me from saying too much.

Dig a little and you'll find what you need on Mark and Russ. Or just wait a little bit, and it'll come to light. Keep your eye on Orange County.

When you're a one-trick refi pony and hedged virtually everything on one large client - then the market turns and said client goes down hard you get stuck. Bad business decision? Sure. Malicious? No.

http://mortgagepirates.wordpress.com/2009/01/03/quick-loan-funding-and-daniel-sadek-emerge-as-pirate-swashbucklers-of-subprime-mortgage-reign-of-deceptive-mortgage-lending-citigroup-provided-much-of-the-support-for-his-pillaging/

That link will lead you to where you want to start to begin to understand what happened. At a few thousand orders per month and 3 months unpaid (never paid), some internal wrangling by a partner or two and disaster is imminent.

Obviously there's probably a lot more that I'm not aware of but that's the meat and potatoes.