bv Back to Basics for Wachovia
In just a few days the Nation’s 4th largest bank will put an end to their wholesale lending division. Traditionally the wholesale division of a bank offer
s loans to mortgage brokers at a lower cost than their retail branches offer to the general public. The broker then sells the loan to their client, with a fee added. In the end the borrower pays “approximately” the same for the loan from the broker as they would at the retail branch. Mortgage brokers generally had more ability to use creative financing and were not always as restrictive as bank retail branches.
Starting July 25th Wachovia will be “re-positioning” their business focus towards their branch franchises, which will allow Wachovia to tend to the needs of their customers who already have a banking relationship with the company.
This latest company “re-positioning” plan comes as no surprise. The wholesale lending industry is what many are pointing fingers to as part of the “cause” of our mortgage meltdown.
Wachovia has not released the number of jobs that may be on the line. Next Tuesday they will be disclosing their second-quarter earnings which many expect to include more details on what their plans are for the future of the company.
Perhaps transitions like this one will create a more focused and informative customer service lending experience in the future, one we would fully endorse.
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