M & T Bank's Wholesale Retreat

This just in today, a M & T employee sends the following message to brokers:

"Most of you will be receiving an official notice from M & T Bank, mortgage division, in the next 24-48 hours concerning the bank's departure from the wholesale mortgage business outside the bank's "footprint area", which obviously excludes all the southeast.

That notice will explain procedures for existing pipelines, locks and necessary closing dates. All the AEs of M & T in the affected areas will be officially dismissed on May 6th. However, as happened to me before at Sovereign Bank last year, I personally remain available to help you close any pipeline loans. The Montgomery office will function until June 30, 2008."

The official announcement (view here) followed shortly thereafter. An "unnamed source" told us they will be closing Montgomery AL Op's center, and continue Wholesale from their 'footprint' areas, which is 15 Eastern States, plus WA, CO, UT, and OR.

We previously reported on M & T's consolidation in our 2008-01-31 newsletter (premium membership required).

There's something wrong here. M & T says they are in full retreat to the bank footprint, they let go of the AE's, and say they are still in the wholesale lending business. But the announcement clearly states the last closing date is Jue 13th. How can you cut off all your AE's and Brokers, and say you are still in the business? Please get in touch with the Implode-O-Meter if you know the answer to this!