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New England Wholesaler Done

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Following a major downsizing earlier this month, a New England wholesaler is calling it quits.

Webster Bank N.A. will reorganize its mortgage banking unit, parent Webster Financial Corp. announced today.

The reorganization will result in the closure of its wholesale and correspondent channels, the statement said.

During the first week of December, a spokeswoman for the Waterbury, Conn.-based company told MortgageDaily.com it would close wholesale offices in three states, resulting in 60 layoffs. The decision was part of a larger strategy to scale back operations outside New England, she said.

Today’s statement indicated more layoffs were forthcoming and expected to be completed by February. But no WARN notices have been filed in Connecticut by Webster during November or December, indicating that less than 50 layoffs will result in the state.

On Wednesday, Webster Bank announced it was selected as a lender by the Connecticut Housing Finance Authority for the $50 million Connecticut Fair Alternative Mortgage Lending Initiative & Education Services Program.

Webster closed down subsidiary Peoples Mortgage Co. in April, resulting in a charge of $2.3 million.

Related:

Wholesaler Reduces Operations, Jobs
A Connecticut-based lender with assets of $17 billion is scaling back its wholesale mortgage operation by closing offices and cutting jobs in three states.

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