Well, it's official (see the official notice below).  Wachovia is out of the wholesale mortgage business.  What does that mean for brokers, realtors, and most importantly, buyers?  Well, it means that there is one less option in the wholesale market for them.  The good news is that Wachovia has offered extremely reduced programs for the past 6 months, so they haven't been a primary option for many for quite a while. 

As for further shocks to the mortgage broker model, this was a widely anticipated measure.  It will not send shock waves through financial markets, nor will it shake other companies' confidence in the wholesale channels.  In other words, the broker world will go on and continue. 

To:                  Wachovia Mortgage, FSB Brokers and AEs

From:      Tim Wilson, Head of Loan Origination for Wachovia Mortgage

Subject:   Wachovia Mortgage, FSB to Discontinue Lending through Third Party Brokers

As you know, the mortgage industry is experiencing a very challenging market environment.  Declining housing values, increased foreclosures, disappearing mortgage lenders, and a struggling secondary market are all symptoms of this market turmoil.

Wachovia Mortgage has evaluated its business model and decided to reposition its mortgage business.  Going forward, we will primarily focus on customers who have relationships with the bank, and who are located in geographies where Wachovia branches are located. 

As a result of our new strategic focus, Wachovia Mortgage has decided to discontinue lending through third-party, or wholesale mortgage brokers.  This decision will be effective July 25, 2008, which will be the last date on which Wachovia Mortgage will accept loan applications from brokers.

This was a very difficult decision to make.  Out of respect for the valued relationships we have had with numerous mortgage brokers over many years, we wanted to make you aware of this change as soon as possible