Trump Mortgage
| Company type | Private |
|---|---|
| Industry | Financial services |
| Founded | April 2005 |
| Founder | E.J. Ridings |
| Defunct | August 5, 2007 |
| Headquarters | New York City , United States |
Key people | E.J. Ridings (President and CEO) |
| Products | Mortgage lending services |
Trump Mortgage LLC was a U.S.-based financial services firm bearing the name of entrepreneur and 45th & 47th President of the United States Donald J. Trump, with its headquarters located in New York. The initial announcement of Trump Mortgage Services came in July 2003. The formal establishment of Trump Mortgage LLC occurred in April 2005, followed by a limited opening in November 2005 and a full-scale launch in April 2006.
E.J. Ridings held the roles of president and CEO. Ridings, who originated the concept for the company, was introduced to Trump through his son, Donald Trump Jr.. By September 2006, the company had obtained licenses in 25 states and promoted itself as the fastest expanding commercial and residential mortgage lender across the United States.
The business ceased operations on August 5, 2007, citing a deteriorating economic environment alongside revelations that Ridings had falsified his professional background. Analysts also pointed to an excessively rapid growth strategy as a contributing factor. At the time of closure, Trump had licensed his brand name to First Meridian Mortgage, which briefly operated under the name Trump Finance before returning to its original branding.
History
In July 2003, businessman Donald Trump introduced Trump Mortgage Services as a brokerage intended to finance his own projects and other commercial real estate ventures. Trump Mortgage LLC was officially established in April 2005, with its headquarters situated at 40 Wall Street as part of The Trump Organization. By February 2006, it had facilitated approximately $25 million in loans, mainly within New York, held licenses across multiple states, and aimed for nationwide expansion.
E.J. Ridings, serving as both president and CEO, planned to secure warehouse lines of credit to enable self-funding of loans by year-end 2006. Initially forecasting $3 billion in real estate financing for that year, Ridings later adjusted projections downward to less than $1 billion. Ridings conceived the company idea and was introduced to Donald Trump by Donald Trump Jr.
The official inauguration of Trump Mortgage LLC took place on April 5, 2006, at Trump Tower in New York City. Despite early positive expectations fueled by a robust real estate market and perceived business opportunities, six senior executives departed within six months. Notably, Lee Bienstock—a participant from Trump's reality series The Apprentice—joined as associate vice president of corporate development in August 2006.
By September 2006, Trump Mortgage operated with licenses in 25 states and claimed status as the fastest-growing mortgage provider for both commercial and residential sectors nationwide. Ridings projected that loan volume could escalate to $100 billion annually within five to ten years. However, subsequent disclosures revealed that Ridings had overstated his Wall Street experience—his employment lasted only three months at Morgan Stanley and six days at Dean Witter Reynolds—raising questions about management credibility.
On August 5, 2007, Trump Mortgage announced it would shut down due to unfavorable economic conditions coupled with the fallout from Ridings' exaggerated qualifications. Industry observers also attributed failure to overly aggressive expansion efforts. Donald Trump clarified that he held no ownership interest but merely licensed his name for the enterprise, expressing minimal enthusiasm for engaging directly in mortgage lending. Simultaneously, Trump licensed his brand to First Meridian Mortgage, which operated under the name Trump Financial in certain states before ultimately reverting to its original identity after closure. David Brecher, president of First Meridian, cited poor timing as a key reason for its downfall.
Unsettled Payments
Jennifer McGovern, who formerly worked at Trump Mortgage, arranged a financing agreement worth $26.5 million that generated over $500,000 in commissions for the company. Although Trump Mortgage received its commission, McGovern did not receive her payment and took legal action. In 2009, she secured a judgment for $298,274 against the firm, which remained outstanding as of March 2016. Furthermore, in 2009, the U.S. Department of the Treasury imposed a tax lien of $3,555 on Trump Mortgage due to unpaid taxes.
See also
External links
- Official website, preserved through the Wayback Machine