Wintrust Mortgage Corp - Wholesale - Wholesale - Agency, FHA/VA
2010-10-15
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Brokers today received an announcement via email that Schaumburg, IL based Wintrust Mortgage Corporation would be closing its Wholesale Lending Division effective immediately:
"Effective today, October 15, 2010, Wintrust Mortgage Corporation is exiting the Wholesale business after many years of service to the mortgage brokerage community. This is a business decision based on our need to better focus our assets and attention to the continued growth of our Retail and Correspondent Channels."
One insider we spoke with told us all of the Wholesale Account Executives were let go earlier today. That amounted to 6 people aligned with the Schaumburg, IL corporate office and another 7 people out of the Overland Park, KS wholesale office (based on the contact lists posted on their web site). We're told underwriters and an untold number of support staff will remain until sometime in December to close out the pipeline. Our source didn't have details on the wholesale division's production, but the company overall averaged more than $302 million per month in 2009.
Monday may yield a more formal press announcement with details of the closure of Wintrust's wholesale division, and we hope to speak with someone at the corporate office. In the meantime, feel free to post your comments below or email us with further info.
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LegalDept at 22:34 2010-10-20 said:
Wintrust has been steady over the past several years according to my sources, though I have no direct experience. Easy to see that the parent company has done just fine. I could be wrong but I think this is not really an implosion, more of a "reg-plosion." Between Dodd-Frank and the new FRB TILA Rule on broker compensation, how can any broker expect to survive or any lender want to assume the liabiity for their business? Expect more wholesale "reg-plosions" as April 2011 draws near. PermalinkRock Ridge at 15:05 2010-11-01 said:
I agree. Broker options on where to send transactions and pricing will be limited. Permalinkadd a comment | go to forum thread
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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.