Wilmington Finance will cease wholesale mortgage banking originations effective immediately, according to a release from the firm.

The mrotgage company will still honor existing loan commitments in its mortgage banking pipeline and maintain a reduced retail operation.

Wilmington Finance, a wholly owned subsidiary of American General Finance, has been engaged in the business of originating nonconforming residential real estate loans directly and through mortgage brokers and selling those loans to third party investors.

By the end of 2008, about 335 positions will be eliminated, with the company providing outplacement assistance to affected employees.

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