News is breaking this afternoon that another bank has shut down its wholesale and correspondent mortgage operations -- First National Bank of Arizona, one of the state's larger banks, is the latest to decide to focus its operations on retail origination. From the company's Web site (hat tip, ML Implode-o-Meter's premium service):
Effective as of 1pm EDT (10am PDT) today, August 21, 2007, 1st National Bank of Arizona (FNBA) will focus on Retail originations and has suspended Wholesale and Correspondent originations. Wholesale and Correspondent locks received prior to 1pm EDT (10am PDT) today, August 21, 2007 will be honored. Requests for Edits or Extensions to locks after 1pm EDT (10am PDT) today, August 21, 2007 will not be accepted. FNBA Secondary Department
FNBA's mortgage operations grew to $7.3 billion in 2006, according to the company's annual report; it isn't clear if this is fundings or total value of the bank's mortgage book. The bank is primarily focused on Alt-A mortgages. FNBA's wholesale mortgage division operated in 49 states and employed 625 staff, according to a review of company documents. It isn't clear if this suspension entails the closing of each operating division, and/or how many jobs may be affected by the bank's decision.