Well it looks like we lost another one! Normally this is old hat...but we haven't had a major player close it's doors in quite some time now. The other scary thing is that Webster was no sub-prime lender! They were A-paper with some great FNMA rates/products.
Here is the e-mail taht I recived...
You will or have already have received a communication from Webster Bank explaining due to market conditions we will no longer accept new loan submissions after November 30th, 2007. All of the terms are listed below.
I just wanted to reassure you that I will be personally involved with all of the files that are in before that date and are currently in process. Our staff and I will make sure all of the loans are underwritten and closed in a timely manner.
I want you to know that I have worked with some of our group in Chicago for almost 20 years. We are looking to new and bigger horizons. I will be keeping in touch and you all abreast of any new news.
Thank you for your business and I will be in touch!!
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. 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.
•1) Last date of new loans locked or files received will be November 30, 2007
•2) All floating loans must be received by November 30, 2007 and locked by December 14, 2007.
•3) Only 30 day pricing or less will be available after November 30, 2007
•4) No locks of any kind will be accepted after December 14, 2007
•5) By notice of this announcement, your Webster Bank Broker Agreement will be terminated after January 31, 2008 pursuant to the terms and conditions of the Agreement