Wachovia reported a second quarter net loss of $8.9 billion today, and, consequently,will exit its general bank wholesale mortgage origination channel.
This immediate action will result in 1,000 redeployed Wachovia mortgage origination personnel in the companys efforts to assist customers to refinance and restructure pick-a-pay mortgage program.
Earlier on, the company ceased offering the negative amortization option for the pick-a-pay mortgage product and committed to work with customers to refinance existing ones into conventional mortgage products.
Wachovia said the objective is to assist customers in avoiding foreclosures and reduce the companys risks in the mortgage area.
