A senior employee at The Mortgage Operation claims the writing was on the wall for the firm as far back as January.
Mortgage Strategy understands that London-based administrator Carter Backer Winter has been appointed to take control of the company.
The move follows a failed management buyout, rumours of plunging staff morale and reports that brokers have not been paid thousands of pounds in proc fees.
The employee says: “The past few weeks at the firm have been the worst I’ve experienced in the financial services industry. There’s been hardly any communication from the top.”
It is believed that one TMO em-ployee is owed some £20,000 by the firm.
Bob Roche, director of TMO and parent company BTP, was unavailable to comment.
In an email sent to brokers last week, Roche says he intends to set up a company “out of the ashes” under new leadership and with fresh financing.
But the employee tells Mortgage Strategy: “After the past few weeks at TMO, there is no way I’d want to work for the new company.”
Derek Welsby, owner of Merseyside-based DW Independent Services, is owed around £2,500 in proc fees by TMO for cases that completed in February.
He says: “I have been given the run-around by TMO for weeks. Although staff have been helpful, I get nowhere when I speak to the director. It looks as if I’ll never get the money.”
Intermediaries stepped in last week to offer a lifeline to brokers affected by TMO going into administration.
Personal Touch Packaging says brokers with cases that have not completed can call it 0845 620 9690.
Mortgages for Business and KGB Packaging have offered similar help.
Rachel Bancroft, managing director of KGB, says: “It’s sad to hear of a packager closing. Brokers and clients should not suffer unnecessarily.”