Today Washington Mutual accepted it's last loan from a broker. As of April 11, Washington Mutual will be shutting down their wholesale lending division, with up to an anticipated 3,000 job cuts. This after securing $7 billion in new capital and reducing their quarterly dividend to a penny.
In emails this week, Washington Mutual set the time table for existing loans in their pipeline to close. April 10 will be the last day to submit loans to their wholesale division. Any loan not submitted by close of business will not be accepted.
Washington Mutual anticipates closing all wholesale sales centers by May 31, and are setting a cutoff date of June 13 to fund any loans, however they state that they will honor any commitments with expirations after June 13 up until the expiration date of those commitments.
By June 30, all wholesale loan fulfillment centers will be closed. These centers are located in San Diego and Pleasanton CA, Downers Grove IL and Jacksonville FL.
This comes a few months after Bank of America stopped accepting loans from brokers, and highlights the current mortgage industry issues. For more information on this and other topics, please follow the links below.