SUNRISE, Fla. - Mortgage.com, on its deathbed since it laid off more than 500 employees and began shutting down its operations Oct. 31, reportedly has sold some of its assets to an Argentinean mortgage company.
Mortgage Systems International, a subsidiary of Banco Hipotecario SA, acquired the rights to Mortgage.com's technology and proprietary software on Nov. 16, Inman News said, citing filings with the Securities and Exchange Commission.
Mortgage Systems acquired intellectual property rights, technology contracts, third-party technology licenses, furniture, fixtures, and equipment related to technology development. It also bought Mortgage.com's Rapid Response Center Web site and its Closer domain name. Mortgage.com will receive $1.5 million in cash, 25% of equity interests in Mortgage Systems, and a two-year option to acquire 5% more equity for another $1.5 million in the deal.
In its nearly two years in business Mortgage.com has lost $113 million, changed its business focus from direct consumer lending to providing business-to-business mortgage technology, and has been sued over the original deal it made to buy its domain name. Last year Mortgage.com paid almost $2 million in cash and stock and signed long-term marketing and revenue-sharing agreements involving the name.
In the third quarter alone Mortgage.com lost almost $24 million, pushing losses for the first nine months to $47 million.