More problems for Tucson's First Magnus

No paychecks, but assistance promised for First Magnus workers

Company officials put together $1 million in aid but said their accounts are frozen.

By Christie Smythe
Arizona Daily Star
Tucson, Arizona Published: 08.21.2007

First Magnus Financial Corp. still is not sending out paychecks to its former employees.
But the Tucson-based mortgage lender announced it is creating an assistance fund of more than $1 million to ease the burden.
In a news release, the company said paychecks have been delayed because its accounts were frozen by investors that provided capital to First Magnus to make loans.

http://www.azstarnet.com/business/197349

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Tucson Housing Market Could Take Hit

Another article from Tucson. They are indicating this has to do with First Magnus closing, but the house they are talking about has been on the market for more than a year. Since First Magnus just went out of business and the lending problems did not exist before this spring, obviously lending was not the problem. There is a video on the page also.

http://www.kold.com/Global/story.asp?S=6944906

Tucson Housing Market Could Take Hit

Aug 17, 2007 08:30 AM MST

The closing of First Magnus could have a negative and positive effect on the Tucson Housing Market.

"This is my equity, this is my retirement."

James Shirkey is seeing that equity and his retirement slip away as the housing market takes another hit with the closing of First Magnus.

"A year and a half ago, according to appraisals, I had about $140,000 worth of equity and now I'm getting down to $70,000 or $80,000 and it still isn't selling, so it's very terrifying.
Shirkey's house has been on the market for more than a year and experts say it could be there even longer now.

Tucson - First Magnus Halts Lending, Lays off Employees

First Magnus announces layoffs, halts new loan activity
By Jack Gillum
Arizona Daily Star
Tucson, Arizona Published: 08.16.2007

First Magnus Financial Corp. announced this morning that it would substantially cut its workforce, after announcing to its employees late Wednesday that it would stop writing loans today.

Employees at the Tucson-based mortgage firm, headquartered at 603 N. Wilmot Road, were leaving this morning with packed boxes - many with downtrodden faces and some uncertain about what to do next.

http://www.azstarnet.com/business/196691