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.
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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!
Andy Huang