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SunTrust is planning on closing their Denver, Dallas and Richmond wholesale branches within the next 60 days according to a highly reliable source.
From the SunTrust Web site:
SunTrust Mortgage, Inc. is a wholly-owned subsidiary of SunTrust Bank - a $180.3 billion financial institution operating in Virginia, the District of Columbia, Maryland, North Carolina, South Carolina, Georgia, Alabama, Tennessee and Florida. Currently, SunTrust Mortgage, Inc. originates loans through 214 locations in SunTrust markets and adjacent states, maintains correspondent and broker relationships in 49 states and services loans in 50 states and the District of Columbia.
We’ll provide more details as they come available; but for now just more of the same. Wholesale branches seem to be the first on the chopping block for any lender looking to weather the storm.
What is interesting here is that SunTrust uses a lot of contract workers for underwriting and processing. You don’t hear about these layoffs as they are not technically employees. They are told just to not come in today as there isn’t any work. Additionally, much of the underwriting for the wholesale AND retail is done in the same office. Lots of overlap, unlike other lending models. I have to wonder how this will affect the retail side.
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