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WaMu shutting down their wholesale mortgage business.

By
Real Estate Agent with Coldwell Banker
If you haven’t heard, WaMu is shutting down their wholesale mortgage business and closing their freestanding home loan offices.  WaMU, which was one of the largest lenders at one time, suffered heavy losses in the current credit crunch.

Let us hope that when this market is stabilized that we retain some of the lessons learned in our collective consciousness so that we don’t have to go through this again.  The company announced that they would lay off 3,000 employees.  My heart goes out to the many people who will lose their jobs.

I’ve heard that one of the big problems WaMu had was how they did their appraisals which came in oftentimes too high.

What do you think?


Comments (9)

Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes

It's sad to see this happen.

That which does not kill us, will make us stronger.  Right??

Thanks for sharing.

Linda

Apr 09, 2008 02:23 PM
Geoff Scowcroft
Coldwell Banker - Studio City, CA
I know some really good folks at that work at their home loan offices. Its been a tough time for many.
Apr 09, 2008 02:43 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
I am sorry to read about it. I hope the economy improves soon.
Apr 09, 2008 11:06 PM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com
This is sad to hear... I've always liked them- not a single bad experience.
Apr 11, 2008 06:51 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.
Peter...Everytime another one closes, it gets harder to get folks qualified!
Apr 17, 2008 01:50 PM
Brian Schoedel
BMS - Naples, FL

I am concerned every time you hear another bank ending its wholesale. This will make it much more difficult for buyers to purchase and home owners to refinance. One less bank is one less option for a Realtor's potential client.

Let's find a way to educate these potential new home buyers to be credit and finance savvy to ensure they will be able to obtain the financing. Everyone deserves to buy the home of their dreams.

Cheers,

 Brian

Apr 17, 2008 02:39 PM
Peter Wolf
Coldwell Banker - Valley Village, CA
Consolidation as the economy tightens is natural, but it hurts the consumer.  Hopefully, when the credit markets loosen up again we will see new competitors enter the market.  Unfortunately, so many of these banks went out on limbs in search of higher profits.  It was this short-term thinking that really hurt them.
Apr 17, 2008 05:16 PM
Charles G. Hennebeul
AMERICAN CASH SOLUTIONS INC - Melville, NY

Some of my friends on the residnetial side said fraud was rampant..that loans that should not have been done were done. NY attorney general was doing some investigation on overinflated appraisals but I don't know what the outcome was. I did not know freestanding offices was included in this and thought intially it was scapegoating the brokers like Bank of AMerica did. 

Here in NY on Long Island , where on of the biggest bubbles cam about for the first time I saw over 30 homes for sale below $400,000 in NY!!!

Apr 20, 2008 07:40 AM
Kimberly Hinson
First State Bank - Lexington, TN

I hate to hear of  someone losing their job! I am so thankful to continue doing loans.

 It is so important to educate the customer. With the market getting tougher, if they are educated and told how to improve their credit then in about a year or so we will have a new customer. Hang in there guys!!!

Aug 14, 2008 08:55 AM