Washington Mutual exit the wholesale mortgage business
Here is an interesting article today from NEW YORK (CNN) — Washington Mutual told employees Monday that it will exit the wholesale lending business and close home-loan centers nationwide.
Washington Mutual, the nation’s largest savings-and-loan association, is taking those steps to focus on delivering home-lending products to customers through banking stores and online, a WaMu spokesperson said.
Sara Gaugl, WaMu spokesperson, told CNN that the bank will no longer work with third party brokers. She said WaMu also will close its remaining stand-alone Home Loan Centers.
Gaugl said the company has not posted specific information about how many stores and employees will be affected.
The bank is close to a deal with private-equity firm TPG and other investors to receive a $5 billion investment, according to The Wall Street Journal.
The infusion would help WaMu meet its pressing capital requirements as the bank faces steep losses stemming from the housing crisis.
Would be very interesting to see how the financial market will turn out. The housing crisis is a goldmine for those who knows how to play the downside correctly.
To your continual success!