HSBC to Cease Wholesale, Correspondent Mortgage Lending

November 18, 2008 No Comments »

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A took awhile, but it looks like HSBC has finally decided to throw in the towel, leaving very few mortgage lenders in the wholesale space.

The company announced today that it would cease both wholesale and correspondent mortgage lending effective immediately, as a result of, you guessed it, “unprecedented market conditions.”

HSBC will continue to process loans registered as of today, but all loans must be locked by December 2 and funded by January 20.

As expected, the company will continue to originate mortgages via its 460 retail bank branches, following the ongoing trend adopted by many major banks and lenders amid the ongoing mortgage crisis.

It’s unclear how many employees in total will be affected by this decision, though 225 workers have been given 60-day notice at HSBC’s 1,100-strong facility in the Buffalo, NY area, per the Buffalo News.

HSBC Mortgage Corp. services over 400,000 first mortgages valued at over $68.8 billion, and more than 120,000 home equity lines with value in excess of $3.5 billion.

Shares of HSBC ended the day up 17 cents, or 0.32%, to $52.48, not far from their 52-week low of $49.51.

Check out the latest list of mortgage lender closures, layoffs, and mergers.

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