WaMu (Subprime) - Wholesale


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According to an email sent out today, Washington Mutual will discontinue all Wholesale Subprime Origination effective immediately.

"As a result of recent market changes, WaMu Wholesale will not accept Specialty Lending (Subprime) loan submissions on or after December 12, 2007."

To view the entire message, click here.

In an interesting news item from the Boston Herald, it appears a deal is near to sell these 190 Branches to another Lender.

"The cutbacks represent part of a nationwide plan to shut 190 WaMu offices nationwide.

However, a source familiar with the situation said the bank could announce a deal as early as today to sell many or all of the closed offices to a competing lender.

"Most of the employment of these offices will be rolled to another (company)," said the source, who spoke on condition of anonymity."

We have word from some Brokers that the closures have delayed fundings:

"I have had a file STUCK in UW at WaMu and I just got off the phone with [del]. She says that they are closing their Bellevue, WA office and so ALL of our files are in LIMBO..."

An internal WaMu communication from Steve Stein states they are also shutting down the Custom Construction program, and setting up an entirely new New Sales Management Structure. Click to view the entire inside strategy.

One of our viewers reports:

"WAMU non-bank retail closed today. They have closed the "home loan centers". The LO's in Cranston, RI were met by security guards this morning and have been given no opportunity to gather personal belongings, get loan status or given any type of debriefing."

For more stories and first-hand experiences, visit our forum here or here.

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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.