NEW YORK -- First Magnus Financial Corp., one of the largest independent U.S. mortgage lenders, on Tuesday filed for Chapter 11 bankruptcy protection, becoming the latest provider of home loans to collapse as the U.S. housing market slumps.

In its petition filed with the U.S. Bankruptcy Court for the District of Arizona, Tucson-based First Magnus listed $942.1 million of assets and $812.5 million of liabilities as of May 31, and between 25,001 and 50,000 creditors.

First Magnus was the 16th-largest U.S. mortgage lender from January to June, originating $17.1 billion of home loans, according to the newsletter Inside Mortgage Finance.

It stopped funding home loans and taking mortgage loan applications last week, citing "the collapse of the secondary market." Founded in 1996, the company said earlier this year that it operated in all 50 U.S. states, had more than 300 offices, and employed more than 5,000 people.

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