Wachovia Leaves Mortgage Industry

[Aug 25, 2008.]

 

Even with the largest companies, the state of the economy, whether it is in the throes of prosperity or leaving people struggling with debt, lets nothing go untouched. In fact, it could very well be said that the largest companies are often the first to get hit the hardest, and if the mortgage industry is any indication of this, then Wachovia, the fourth largest bank in the nation, has something to show for this.

One considered a giant in the business of wholesale mortgage lending, Wachovia has announced recently that it will be leaving the market on July 25th. At that date, the company will cease offering mortgages through brokers, which will put the company on equal ground with other lenders that have made similar moves to exit the troubled industry. For example, Bank of America, a rival institution, has removed itself from the business around the beginning of this year.

In regards to the changes that will affect the company's workforce, Wachovia did not disclose any information regarding the number of jobs that are expected to be cut due to their exit from the business. The details surrounding this matter are expected to be released in the upcoming weeks as the company releases reports on its current earnings for this year.

These changes don't necessarily mean that the company will stop dealing with mortgages entirely. Rather, the company will stick to customers on a local basis, serving them from the available branches located throughout America, as opposed to going through third parties such as brokers to reach them. The company believes that these changes will help the bank focus more on providing a quality experience and satisfactory service by allowing people to deal with the bank directly instead of going through middlemen to get the loans they need to afford the houses that they want.