City Lending To Shut Down Amid Regulatory Strain, Market Consolidation

Virginia-based mortgage lender City Lending Inc. is winding down operations as regulatory burdens and ongoing industry consolidation weigh on independent mortgage banks, according to founder and CEO Jorge Campodonico.

The lender originated approximately $232 million in mortgages over the past 12 months — most of it through Federal Housing Administration (FHA), conventional and purchase loans — according to data from mortgage tech platform RETR.

Records from the Nationwide Multistate Licensing System (NMLS) show the company had three sponsored loan officers at one active branch as of Monday. City Lending maintained licenses in 29 states, Washington, D.C., and Puerto Rico.

“City Lending made the decision to wind down operations after carefully reassessing the business in light of the evolving regulatory environment and continued market consolidation. It was a deliberate decision based on the realities facing independent mortgage lenders today,” Campodonico said in a statement given to HousingWire. “While it’s never easy to close a company you’ve built, I believe it was the responsible course of action given the circumstances.”

The company’s website is no longer active. National Mortgage News first reported the closure.

In a social media post, Campodonico reflected on his journey as an immigrant entrepreneur, noting that he founded the retail lender in 2013 and later led a team of more than 220 employees, funding roughly $500 million annually at its peak.

“When I came to this country as an immigrant, I had nothing but ambition, work ethic, and belief,” he wrote. “We navigated market cycles, regulatory environments, growth, adversity and transformation. We built cross-border teams, created opportunities and served thousands of families.”

Campodonico added that market cycles alone do not determine an organization’s fate, emphasizing leadership, culture and values as defining factors in long-term sustainability. He added that he’s now pursuing new ventures focused on commercial strategy, client experience and long-term value creation.