Report: WaMu Will Exit Warehouse Funding Business
National Mortgage News is reporting that Washington Mutual will shutter its entire warehouse lending division. According to the NMN story, a spokesperson confirmed the move late this afternoon and said the warehouse group is in a "wind-down phase" and that WaMu employees "just received the news themselves." No formal press statement was available on WaMu's Web site, but I'd expect one soon. WaMu CEO Kerry Killinger made headlines earlier in the week when he said a "near-perfect storm" in the housing market may force the bank to increase its loan loss provisions by $500 million. Earlier this week, I'd posted on Citigroup's decision to pull back on its warehouse lending activities as well. I'd expect to see similar moves from a few other players in the next few weeks.