State Pledges $3.5 Million for Milford Company's New HQ

The state money is for job creation, says a spokesman for Total Mortgage Services, LLC.

Gov. Malloy visited the Milford office of Total Mortgage Services Monday for a ceremonial ribbon cutting. Credit: Contributed Photo
Gov. Malloy visited the Milford office of Total Mortgage Services Monday for a ceremonial ribbon cutting. Credit: Contributed Photo
Based on a press release from Governor Malloy's office

Gov. Dannel P. Malloy Monday announced the state Department of Economic and Community Development (DECD) will provide Total Mortgage Services, LLC with a $3.5 million loan to help the company establish its new national headquarters at 185 Plains Road in Milford.

The company moved into the new building on Jan. 1, according to a company spokesman. The state money is for job creation, he says.

The incentive package, which was approved during a recent meeting of the State Bond Commission, will create at least 140 new jobs and retain 140 existing jobs for Connecticut residents.

“One of my economic development priorities is to build on our strengths as a state, including the established industries that are driving Connecticut’s economy,” said Malloy.

“By supporting companies like Total Mortgage Services, we are developing the industry infrastructure and workforce of our financial services, bolstering our standing as a national leader in this highly competitive sector and creating hundreds of good-paying jobs with good benefits in the process.”

Total Mortgage Services plans to double in size over the next five years and will invest over $5.2 million to purchase, improve and equip its national headquarters in Milford. The DECD funding will finance leasehold improvements and new equipment in support of Total Mortgage Services’ expansion project. 

“The state's support has been indispensable to me at this crucial stage in Total Mortgage's nationwide growth,” said President and CEO John Walsh. “The funding has enabled us to consolidate our operations in a building here in Milford that was ready for new ownership, and do it the way it should be done.

"And this isn’t just a win for my company our employees and their families. It shows that state government and small entrepreneurs can work together to compete and win in the national marketplace.”

DECD will provide the $3.5 million loan with no interest for the first 2 years and an interest rate of 2 percent for the remainder of the 10-year term. Total Mortgage Services will be eligible for $1.5 million in loan forgiveness if it meets its obligation of retaining 144 full-time positions at the company and creating 140 new jobs by 2018.

“This is great news for Milford,” said State Sen. Gayle S. Slossberg (D-Milford). “Having Total Mortgage headquartered here will provide jobs for our citizens and growth for our community at large. This is a superb example of a positive partnership between business and government.”

“I am very excited to see Total Mortgage continue to grow, and more importantly to do so here in Milford,” said State Rep. James Maroney (D-Orange, Milford). “They have been a great member of our community and I know they will continue to be so. The jobs that they add will be good jobs which will be good for both our community and the entire state.”

“I’m thrilled that Total Mortgage Services’ home for its National Headquarters is Milford,” said Milford Mayor Ben Blake. “With a vibrant business community and a streamlined permitting process, Milford is the ideal place to work, live and play.

"Total Mortgage will benefit from our exceptional workforce, as well as our easy access to railways, roadways and other major metropolitan areas. We look forward to supporting and partnering with Total Mortgage Services, LLC in its future growth and expansion.”

Founded in 1997, Total Mortgage Services is a direct-to-consumer and wholesale mortgage lender. In 2010, the company launched its wholesale lending platform TMS Funding. Total Mortgage Services has held a Better Business Bureau "A" ranking since 1997 and has made the Inc. 500 fastest-growing companies in the U.S. each of the last four years, including recognition in 2012 as one of the companies that are generating the most new jobs.

Today, Total Mortgage is licensed in 30 states as well as the District of Columbia and is one of the leading independent mortgage banks in the U.S.

“DECD is proud to support a local company like Total Mortgage Services, which has called Connecticut home since it began 15 years ago,” said DECD Commissioner Catherine Smith. “The company has been here for its customers and weathered the mortgage crisis of 2008 by originating only quality loans, providing top-level customer service, and building an excellent technology platform.

"Now that the company is ready to take the next step with its $8.75 million expansion plan, DECD is happy to be able to ensure the company stays and grows in the state.”

Tmc January 13, 2014 at 12:05 PM
Why do we use tax dollars to keep bribing companies to keep a piddling workforce here? U need to reduce the cost of doing business in CT to attract companies. I mean it's not like VW or Honda is offering to build a factory here that will create 1000's of jobs. That loan I could see. But not to a company that all it does is manufacture cash through interest payments...to themselves for themselves. I don't get it.
Jason Bagley (Editor) January 13, 2014 at 12:16 PM
Matt, 185 Plains Road. A spokesman for the company says it's already up and they moved in Jan. 1, which was not explicit in the initial release. The spokesman tells me the state money is for job creation. I'll add these details to the article now.
CB January 13, 2014 at 12:36 PM
How many new jobs did they guarantee to create for the 3.5 million low or no interest loans?
JP January 13, 2014 at 12:49 PM
Malloy keeps on handing out taxpayer dollars to big corporations while the small businesses in this state get crushed under the CT tax burden, which is on top of minimum wage and healthcare costs going up. No surprise that recent articles show CT among the top states that had more people moving out than in over the last 10 years.
CB January 13, 2014 at 12:50 PM
Whose job is it to check on these corporations to see if they are holding up their end of the cheap loan bargains?
tlkensington January 13, 2014 at 01:05 PM
I wonder how much the owners of Total Mortgage will donate to Malloy and Democratic committees. Take the ferry in Bridgeport for example. They want to move the dock to the other side of the harbor and the DOT was against the move. All of a sudden DOT opposition evaporated and the ferry company made two large donations to Demoracts. Also a case where the state gave loans to affordable housing companies and then the companies or people attached to them donated to Democrats. Gotta pay to play in Connecticut. I'm suspicious whenever I see the state cutting a check like this. Hopefully I'm wrong with Total Mortgage.
CB January 13, 2014 at 01:07 PM
Show me a state, where you don't have to pay to play.
Had enough January 13, 2014 at 02:00 PM
Oh, please! Such a joke! Why don't you ask one of the 50 or so employees who were recently laid off from this company in 2013? Better yet, read the reviews of this employer on various websites such as glassdoor.com Another HUGE mistake for the state of CT!
Tmc January 13, 2014 at 02:22 PM
They actually have a stellar rating (http://www.zillow.com/profile/Total-Mortgage/Reviews?s1=0&s2=3) with only two "would not recommend" reviews, one of those being from someone who can't even use remedial syntax, so I suspect his experience was due to his own idiocy.
Had enough January 13, 2014 at 02:26 PM
I'm not talking about consumer reviews - I'm talking about employee reviews.
Tmc January 13, 2014 at 02:45 PM
But I looked on glassdoor; there was a grand total of .....2. Hardly indicative of a poor place to work. One idiot even threatened a class action lawsuit. For being dismissed? Really? Not sure he even knows how the law works. If he's that stupid to think a non-union place doesn't have the right to fire anyone they please (provided it wasn't based on racial or other bias), he deserves to have to learn the phrase "supersize that fer ya?"
Had enough January 13, 2014 at 03:00 PM
First of all, there are other sites - I was just referencing one of them. I guess the 50 +/- employees comment on here directly for you. I'm not so sure the State would have willingly lent 3.5 million to a company who does not have anywhere near 140 employees any longer, and in fact, laid off 50(e) of them recently. Hmmm... perhaps this company wasn't 100% truthful with their request to the state?
Tmc January 13, 2014 at 03:07 PM
And those other sites are? I googled "total mortgage services employee reviews" and indeed.com had a grand total of....1. So could you provide links to the sites you claim are there? And that's what non-union companies do; they lay off people that have been there awhile that are near the top of the salary range and then hire kids right out of college who think 22K/year is all the money in the world to replace them. Sucks, but nothing you can do. Google Jack Welch of GE and see what he did to his employees for no other reason than to motivate others with fear.
Had enough January 13, 2014 at 03:24 PM
You're missing the point. This company who just received 3.5 million from our state has done nothing to increase employment within the past year. In fact, they have been a contributor to the unemployment within CT.
James January 13, 2014 at 03:34 PM
Private businesses and Governments should not be "partners".
Milford Resident January 13, 2014 at 04:23 PM
You're joking right Malloy? This is the same company that laid off half of its employees in the last 3 months and made the remaining ones take pay cuts and reduced hours. What a bunch of garbage this is.
Tmc January 13, 2014 at 07:07 PM
I realize that Had; the company laid off people. Sounds like they're hiring again in the same manner I told you about (Google Jack Welch yet?) Just direct me to all those other websites with all the employee bad reviews please, because seeing is believing you know.
Home Ct January 14, 2014 at 03:36 PM
There is something wrong with the State funding this company that has recently laid off over 50+ employees and has a record of lay offs and unemployment claims. Did Jason Bagley research how the grant was obtained with the history of employee lay offs? It is a lot easier to fulfill the terms of the loan if the company laid off half the employees before year end. Then rehires at half the salaries. The only person making money is the owner and the state pays for the profits. There is something wrong with this picture.
Tmc January 15, 2014 at 07:57 PM
Just about anything to do with Gov'ner Mal-liar is wrong.


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