Broker options continue to dwindle as Wachovia Corp. has closed the doors to the alternative-lending wholesale subsidiary.
Wachovia decided to shutter EquiBanc Mortgage Corp. after "an intensive strategic review of its mortgage business which has altered the company's approach to the origination of nonconforming loans," according to an announcement today on the unit's Web site.
EquiBanc, which on its site touts that it is "an industry leader in the wholesale market," came under Wachovia's umbrella through the acquisition of SouthTrust Corp. in late 2004.
The Marietta, Ga.-based nonconforming lender originated loans in 25 states and Washington, D.C., under the name of SouthTrust Mortgage Corp., according to the site.
The move to shutter EquiBanc is part of a spectacular consolidation in the subprime wholesale sector that has seen several smaller players fail and a few larger ones trading hands.