Thursday, April 20, 2000 | 11:47 a.m.
Altiva Financial Corp. closed its Las Vegas office as part of an "orderly winding down" of its business nationwide. The company said the move was necessary when an "immediate cash fusion" failed to occur.
Altiva also reduced staff by 90 percent in its Atlanta office, and in its Charlotte, N.C.-based subsidiary the Money Center.
The Atlanta-based financial services firm specialized in sub-prime home equity loans as well as debt consolidation loans. The company ceased providing loan originations Friday and is negotiating with its creditors.
A company spokesman could not be reached for comment.
Altiva had a branch network of 20 offices nationwide. Formerly known as Mego Mortgage Corp., Altiva was spun off from Las Vegas-based Mego Financial Corp. in 1997 and was publicly traded on the Nasdaq stock exchange.
Nevada Financial Institutions Division Commissioner Scott Walshaw said Altiva was "an exempt mortgage company," meaning the firm did not require a Nevada financial license.
"Many companies specialize in buying sub-prime paper," he said. "And in a (real estate) market such as this one, it's easy for those types of companies to enter and depart quickly."
In its quarterly report released last week, Altiva reported a loss of $3.3 million or 85 cents per share, compared to a loss of $3.1 million or 55 cents per share one year earlier.
The company also noted loan production from the Money Center was "significantly below" expected levels, as was the sale price of loans sold during the quarter.
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