The meltdown in the subprime market is coming to a head as Wachovia is shutting down its EquiBanc Mortgage subsidiary. The subprime lending division is facing tighter restrictions, a limited market for selling the debt, and new regulatory challenges forcing Wacovia to re-evaluate the buisiness.
The Web site of Georgia-based EquiBanc states Wachovia decided to close the business after “an intensive strategic review of its mortgage business, which has altered the company’s approach to the origination of nonconforming loans.”
A Wachovia spokeswoman confirmed the reason for the closure.
EquiBanc was Wachovia’s sole business dedicated to subprime lending, the site said.
If you are an agent, how will the lockdown on the subprime market affect your ability to sell?
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