Wachovia has notified correspondent customers it will exit the correspondent business.
A copy of a letter from Wachovia Senior Vice President David A. Keeling, which was reviewed by MortgageDaily.com, revealed the Charlotte, N.C.-based bank stopped taking new correspondent registrations yesterday.
Wachovia did not immediately respond to MortgageDaily.com's request for a comment.
"After a comprehensive strategic review, we have decided to exit the Correspondent business," Keeling said in the letter. "This was a very difficult decision."
Locks on existing loans will be honored through March 15 up to a maximum lock period of 30 days, the letter indicated. No lock extensions or changes will be honored for funding dates after April 15.
Correspondent purchases are made through Wachovia Mortgage Corp., according to its Web site.
Wachovia, which touts first mortgage jumbo, Alt-A and non-agency programs on its correspondent Web site, said loans must be underwritten by April 1 and purchased and funded by April 16.
In January, Wachovia Corp. announced it shuttered wholesale subsidiary 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."