|Following a reorganization of the unit earlier this year, MortgageIT Inc.'s wholesale lending division will be shut down.
In February, MortgageIT announced a reorganization of its wholesale branch structure. At the time, the lender said the move would enable it to "weather this turbulent market."
Apparently the strategy didn't work.
Yesterday, the New York-based company told mortgage brokers that it was done.
"Deutsche Bank has made the difficult decision to close the MortgageIT U.S. wholesale lending division," a copy of a broker notice published by the Mortgage Lender Implode-O-Meter stated. "MortgageIT will cease accepting new business as of Dec. 11 and focus on existing business."
Wednesday was the last day new locks were accepted. Loans already in process can be locked until Dec. 24 and must be submitted by Dec. 31. The last day to close and fund is Jan. 30. While no renegotiations will be allowed, extensions will be considered case-by-case.
The wholesaler says on its Web site that it offers "all conventional loan products, including Alt A, agency eligible and home-equity loans."
Deutsche Bank acquired MortgageIT in January 2007 for $430 million. The unit, which originally launched in 1988, was originating around $7.5 billion quarterly up until the third-quarter 2006, the last volume data available at MortgageDaily.com.
In November 2007, Deutsche Bank closed the retail side of MortgageIT. A month earlier it cut 580 jobs at the lender.
On its Web site today, MortgageIT says it employs around 2,500 people and operates 40 branch offices.
"MortgageIT is one of the fastest-growing and largest residential mortgage loan originators in the U.S. and continues to expand its product offerings to clients across the country," the Web site states.
A Deutsche spokeswoman didn't respond to MortgageDaily.com's request Thursday for more information.
Wholesalers Tout Subprime, Hard Money & YSPs
MortgageIT recently announced a reorganization of its wholesale branch structure.
MortgageIT Shuts Down Retail
Deutsche Bank is closing the retail side of its MortgageIT unit -- though the company will continue to operate its wholesale lending division, MortgageDaily.com has learned.