But it stopped originating loans in June and said it would only service loans originated before that time. NextPoint will concentrate of its Liberty tax preparation and Community Tax operations, the latter providing tax resolution services.

That June action coincided with a suit LoanMe filed in Delaware Superior Court against AmeriFirst Home Improvement Finance, which was acquired by FNBO, also in June. NextPoint sought millions of dollars in damage for the alleged failure of AmeriFirst to live up to  the terms of a loan servicing contract.

According to LoanMe’s filing, during an audit AmeriFirst managers allegedly admitted the company "did not have the expertise, operational leadership, experienced personnel or general know-how to service the LoanMe portfolio."

NextPoint said this month with without any LoanMe operations, the company could not sustain the debt involving that unit and restructured the company and financing with one secured lender.