Charter One Exits Wholesale Lending

November 27, 2007 No Comments »

Charter One, a division of Royal Bank of Scotland Citizens, announced this morning that it will exit the wholesale lending channel.

According to a company memo, the mortgage lender will no longer accept loans via its wholesale mortgage broker channel, Charter One Specialty Lending Group, after 5:00 pm EST today.

Loans already submitted will continue to be processed, but must fund no later than January 4th, 2008.

It is unclear how many jobs will be lost as a result of today’s news, but sources anticipate between 50 and 100 layoffs.

Cleveland-based Charter One specialized in home equity loans and agency-backed loan programs, and likely exited the wholesale mortgage game for the same reasons as those before them, mainly due to secondary market fallout.

The bank, which has branches in 13 states and non-branch retail and commercial offices in about 40 states, was acquired by the Royal Bank of Scotland in 2004 via a $10.5 billion cash purchase through its Citizens Financial Group Inc. subsidiary.

Check out the latest list of mortgage layoffs, closed lenders, mergers, and rumors.

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