Gateway Bank, F.S.B. - Wholesale - Agency, Jumbo, Alt-A, Home Equity, Subprime
2008-10-17
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A reader alerted us to this announcement on the Gateway Bank web site:
"Gateway Bank F.S.B. has decided to suspend all wholesale lending at this time. Gateway Bank will continue to be active in both warehouse lending (Quick$ale) and correspondent lending.
Effective 10-15-08 Gateway Bank F.S.B. will no longer accept new wholesale submissions."
We spoke with Sr. Vice President Mark Sussman, who told us most of the operations staff had shifted to correspondent and warehouse lending, the bank's fastest growing divisions. Less than five people were let go. The wholesale division had seen volume peak between $250 and $300 million per month, with recent volume dropping below $50 million. The decision to exit wholesale stemmed from preserving profitability. "You just can't do business at 3/8ths of a percent," Sussman explained. "The margins are just too slim."
Gateway Bank, F.S.B. is based in San Francisco, CA. Please feel free to email or post your comments below.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.