Wachovia Exits Wholesale Lending Business

It hasn’t even been a month since Wachovia hired Goldman Sachs to evaluate its loan portfolio, and only 11 days since the company hit a 17-year low after its new CEO Robert Steel came on board, but Wachovia has announced that they are closing their wholesale lending channel that serves mortgage brokers. The latest in the trend away from brokerage business.

Wachovia, formerly World Savings, was one of the last big players to make option ARM loans, and their loan portfolio is under significant strain as values of underlying homes decreases.