The Mortgage Man

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Wachovia Mortgage Curtain Call

Wachovia Corp announces the closing of its …

Wachovia Corp announced today that not only did it cut shareholder dividends by 87%, but it will cease all wholesale mortgage lending.  This does not mean that they are going the way of IndyMac Bank, but it does mean that they are scaling back on their mortgage operations to include retail mortgage origination only.

Many mortgage lenders are moving to a more localized mortgage lending approach in an effort to shore up liquidity and keep the shareholders from running for the hills.  Wachovia mortgage is one of the largest regional banks in the country, and some say they are ripe for a buyout by a large national bank.  This is yet to be seen, but scaling back their risk in the market would certainly be a way to improve their value to potential buyers.


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