Another One Bites the Dust: Wachovia Shuts Mortgage Unit

3

The Associated Press is reporting today that Wachovia Bank, the nation’s fourth largest bank in terms of assets, will be shutting down it’s mortgage lending division.

“Wachovia Corp. lost $8.86 billion in the second quarter, and said Tuesday it was slashing its dividend and cutting 6,350 jobs after losses tied to mortgages soared.” In addition, “late Monday, Wachovia announced plans to leave the wholesale mortgage lending business. And beginning Friday, the company will no longer offer mortgages through brokers, joining other lenders making similar moves to exit the troubled sector.”

Any guesses on who is next?

About Author

Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded BiggerPockets.com when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 600,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.

3 Comments

  1. Wachovia is not leaving the mortgage business it is eliminating its wholesale business. It will still sell mortgages but reduce its risk by taking the sales process in-house. There is a big difference between getting out of the mortgage business and eliminating mortgage brokers as a source of new originations.

Leave A Reply

Pair a profile with your post!

Create a Free Account

Or,


Log In Here

css.php