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Wamu Shutters Wholesale, Loan Centers

by phillenbrand on April 7, 2008

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Hi All,

Cruising towards Loreto, Mexico; but had to post this gem. Sure you have already seen it.  Wholes is still a dead man walking.

April 7, 2008

As you know, this is a very challenging time for the financial markets and WaMu. As a result, WaMu is taking the next steps in executing on our retail-focused strategy while continuing to drive simplicity and greater efficiency throughout the organization. For Home Loans, this means we have had to make some difficult, but necessary decisions about the strategic direction of our group in order to bring us into greater alignment with the company’s overall retail-based approach. Today, we are making the following announcements:

Exit Wholesale Lending

It is with sadness that I announce that we are discontinuing our lending through the Wholesale channel and its broker network. Under the exceptional leadership of Arlene Hyde and her team, this channel has consistently performed well. However, third-party lending simply doesn’t fit WaMu’s approach of serving and acquiring customers through retail distribution.

Arlene and her team are putting the plans together for an orderly exit from the Wholesale business, and we expect it to be completed by June 30.

Realign Home Loans Retail

We are further accelerating efforts to shift our business with the company’s retail-focused business model. As a result, today we are announcing that we are closing all of the stand-alone home loan centers and sales offices and will instead focus on our successful Bank Loan Consultant (BLC) partnership with the Retail Bank.

Last 3 posts by phillenbrand

Related posts:

  1. Countrywide ‘migrates’ 16 wholesale fulfillment centers in consolidation move
  2. Countrywide closes 40% of remaining wholesale fulfillment centers
  3. Citi Home Equity Wholesale – Done.
  4. More banks shut down wholesale
  5. First American Bank Shutters Broker Wholesale Program

  • spolitowicz
    ....smells like a prelude to a bailout. Pump in some cash to keep it afloat, strip away all but the core business activities, see who'll take it (with Federal Reserve assistance). Watch for Countrywide to do the same eventually. They've been closing some wholesale offices and paring branch staff for months now...all under the radar and without publicity. WaMu's action is the death knell for the wholesale channel.
  • mikew
    Closing all standalone retail branches and closing wholesale smells of desparation. How interesting for a company that so agressively bought their way into the mortgage industry just a few short years ago. They did so without any regard for the customers they were buying.

    I think its a good idea for them to focus on servicing their present client base. Far too many Wamu loans had horrible servicing. I have been able to refinance many of their customers based on the fact that they just couldn't stand having to deal with them.

    Lastly, I know a former Wamu wholesale account executive who had ZERO years experience in residential lending who was making over $300K per year.almost immediately upon his hire. It is no wonder they are closing it down. I would suggest that fire everyone associated with their failed management of this mortgage company.

    Lets hope Countrywide does the same thing. Their collective fall from grace is a blessing to me. Its a good sign the industry is cleaning itself up.
  • bryantkeefe
    The Mortgage Broker may not need to be regulated as the wholesale sources close their doors we will all be banking/correspondents before you know it.

    On a bad service note, WAMU has been a mess for the past 7 months so this is no loss to me. I stopped using them as there was too much brain damage getting a file through their system.
  • ec
    Keep squeezing the brokers. I continue to see scum dropping from the market.
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