Webster Bank (Wholesale) - Wholesale & Correspondent

Update - 2007-12-28: Webster Bank has issued another Memo, this time shuttering ALL wholesale lending activities:

"Webster has completed a strategic review of options for the Mortgage Banking business and has decided that future originations will focus on direct to consumer retail originations. We will reorganize and streamline the Mortgage Banking group to maximize support of Webster's direct and retail banking activities. We will discontinue wholesale and correspondent loan originations."

Click here (.doc) to read the entire letter. The memo, distributed to AE's states "...we will send a communication to our broker community next week."

Original Post - 207-11-20: Webster Bank has distributed an email to approved Brokers announcing the closing of their Wholesale Division. Per the memo, dated today:

"CESSATION OF NATIONAL WHOLESALE OPERATIONS

Regrettably, due to current market conditions, effective November 30, 2007 Webster Bank will no longer accept new loan submissions in the Regional Wholesale Offices outside of the bank footprint in the New England area. All loans that have been locked or submitted on or before November 30, 2007 will be honored subject to the terms below. Webster Bank will, however, continue to offer you operations support in the current Regional Offices through January 31, 2008, to ensure underwriting, closing and funding of your loans."

HUD reports over 327 million dollars in volume per month. Emails and telephone calls to the Bank have not been responded to at this time. More information as it becomes available.