Wachovia Closes Subprime Mortgage Division Equibanc

January 30, 2007 No Comments »

Another day, another closed mortgage company. Or at least a mortgage division.

Today, Wachovia announced that their subprime mortgage lender division, Equibanc, closed its doors after a thorough review of its mortgage business revealed that the business of originating non-conforming loans wasn’t a good fit for the banking giant.

Equibanc was the only division of Wachovia dedicated to subprime loans, selling non-conforming loans (jumbo loans) primarily in 25 states including Washington D.C.

Equibanc was founded in 1996, acquired by SouthTrust Corp. in 2001, which was in turn bought out by Wachovia in 2004.

Shares of Wachovia closed slightly lower, down 73 cents to $55.76 on the New York Stock Exchange.

It appears Equibanc is the latest victim of the tumultuous subprime mortgage market that has seen buybacks, fraud, loan defaults, and foreclosures eat away at its business model.

Leave A Response