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Vertice - Wholesale - Agency, Non-Conforming & FHA/VA

2009-02-03

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Midday Update - 2009-02-03 6:45pm EST: The official announcement is out:

"Effective Tuesday, Feb. 3, 2009, at 5 p.m. ET (4 p.m. CT / 3 p.m. MT / 2 p.m. PT) new registrations/applications will no longer be accepted by Vertice. Beginning Feb. 4, new submissions should be directed to Wells Fargo Wholesale Lending.

March 2, 2009, is the last day to fund a loan with Vertice, regardless of lock term. If you are unable to fund by March 2, Wells Fargo Wholesale Lending approved brokers will be provided an option to transition these loans to Wells Fargo Wholesale Lending."

As expected, the memo goes on to note Vertice staff "will transfer to Wells Fargo," but also carries a disclaimer as to how many, adding "we will do the best we can to find opportunities for them in other areas."

Original Listing - 2009-02-03: The message in this 2009-01-09 memo (also posted on their web site) says "business as usual for now." But today we heard Vertice is shutting down.

"They will no longer accept new locks or applications, so today is the end of any new business. The existing employees will find out in the next 30 days whether or not they will be assigned to a Wachovia retail center... Vertice is shut down."

This was confirmed in a call to one of their offices. The deadline for applications and locks is 2pm today (PST), and all loans must fund by March 31st, 2009. Updates to their rate sheets and web site have not yet been posted.

Vertice, based in San Diego, CA, was the remaining wholesale arm of Wachovia when it was bought by Wells Fargo. Integrating the two companies has been an ongoing project for months. A source familiar with their operations guessed they were probably doing upward of $350 to $400 million per month in production. There are eight regional offices across the country. AE's are expected to learn their future in a conference call later today.

We'll be watching for the formal announcement and are working in the meantime to get a headcount for employees being affected and recent volume. As always, if you can provide additional info, please don't hesitate to contact us. You can also post any comments below.


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Comments:

buffandmisterg at 18:08 2009-02-03 said:
Chase, Vertice (Wachovia/Wells), Suntrust etc. The big banks that were standing tall now represent what the "bailout" really means. The bailout is no more than a "buyout" of the free-enterprise system. Wonder why so many of these bailout-accepting CEOs are heading for the hills with their multi-million dollar bonuses?

It's crazy to think that people would want to shore up their savings in banks who could be lending with the deposits but don't. The Fed is doing nothing but giving bailout funds on YOUR DIME to companies who are all feeling the pinch. Crooks like Barney Frank (gay lover a higher-up at FNMA) forced these banks to lend and now they can't get bailed out unless they give the Fed preferred stock. There is no reason I could see to ever invest in the financial sector again. The US Government has effectively hijacked it. Look for more banks to exit the game and all lending that happens on fannie/freddie, FHA or VA loans to happen through a retail mortgage shop through the US Government.

This "walmartization" of the banking industry shows us that the US now stands for "United Socialists". It's too bad that the Fed Funds Rate is zero and banks could borrow the money for free. So, why aren't they? Think about that. Once the eradication of our banking system as we knew it is complete, look for interest rates to skyrocket under the guise of battling inflation.

I feel sorry all of us that have been and continue to be affected by these job cuts. I expect it to continue.

If anybody needs a bartender or someone to wait tables in the Vegas area, look me up. :) Permalink

hosaler at 00:37 2009-02-04 said:
Excuse me, but SunTrust is STILL standing tall as they had their act together WAY before any of the other Lenders "got it". I personally know this for a fact. When mentioning Lenders in this climate and in this Industry, please be careful what names you throw out! Will SunTrust be around forever, who knows? However, RIGHT NOW we are doing just fine. Permalink
hosaler at 00:39 2009-02-04 said:
Chase, Vertice (Wachovia/Wells), Suntrust etc. The big banks that were standing tall now represent what the "bailout" really means. The bailout is no more than a "buyout" of the free-enterprise system. Wonder why so many of these bailout-accepting CEOs are heading for the hills with their multi-million dollar bonuses?

It's crazy to think that people would want to shore up their savings in banks who could be lending with the deposits but don't. The Fed is doing nothing but giving bailout funds on YOUR DIME to companies who are all feeling the pinch. Crooks like Barney Frank (gay lover a higher-up at FNMA) forced these banks to lend and now they can't get bailed out unless they give the Fed preferred stock. There is no reason I could see to ever invest in the financial sector again. The US Government has effectively hijacked it. Look for more banks to exit the game and all lending that happens on fannie/freddie, FHA or VA loans to happen through a retail mortgage shop through the US Government.

This "walmartization" of the banking industry shows us that the US now stands for "United Socialists". It's too bad that the Fed Funds Rate is zero and banks could borrow the money for free. So, why aren't they? Think about that. Once the eradication of our banking system as we knew it is complete, look for interest rates to skyrocket under the guise of battling inflation.

I feel sorry all of us that have been and continue to be affected by these job cuts. I expect it to continue.

If anybody needs a bartender or someone to wait tables in the Vegas area, look me up. :)

You need to rethink the names you have so casually mentioned in your statement. SunTrust is doing fine as they stopped the "crap" products WAY before anyone else did. Permalink
alphajej at 09:02 2009-02-04 said:
Not that I'm looking for another bank to leave wholesale or have more un-employed people out there - But, didn't Suntrust put a freeze on accepting wholesale fha loans? As strong as Suntrust may appear isn't that usually a bad thing or even a foreshadowing event? I could understand dropping a niche program such as a stated loan or a jumbo outside of the fnma jumbo, but fha??? (and yes I realize the deliquency ratio's and such, but rather than dropping the program, raise the fico requirement, lower the dti limit, even lower the ltv caps).... Permalink
buffandmisterg at 11:47 2009-02-04 said:
Whoa, Playboy...for starters, a company the size of Suntrust publicly whining that they dropped FHA because they are tired of training brokers? Not doing FHA is grounds for joining an ailing list at best. The best niches Suntrust had was in their Portfolio ARMs, which they did away with in September. Now they have a generic set of ARMs which they renamed Portfolio, so please don't point fingers this way. If you are an STM employee, good for you.

So, I guess that leaves conventional and jumbo ARMs, is that right? Well, then in that case Me Oculpa. I like SunTrust and I'd wager to say that I have a longer-standing business history with the company than you.

Come to think of it, you're right! Who needs FHA??? Permalink

actionjackson at 10:34 2009-02-06 said:
hosaler-

you are sorely mistaken regarding suntrust and their product line. they were not one of the first to pull out of riskier products. they have a ton of exposure in FLA especially in the construction lending side as well as home equity side. they were drinking the risky product kool aid like most other lenders. they can say what they want about them not getting out of fha but i don't know of anyone who is buying that rhetoric on the wholesale side. if there is smoke there is fire... sorry but i just dont see them hanging around since it is costing them hundreds of millions of dollars in losses... Permalink

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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.