In what may only be the opening salvo Washtenaw Seizes Up/
Washtenaw said it decided Dec. 2 to discontinue mortgage loan production operations due to the termination of the agreement with Genstone, its inability to satisfy closing conditions on its warehouse facility, as well as adverse business conditions.
The company said that it has been impacted by rising interest rates, the subsequent declining demand for new loans, further downward pricing pressure on net sales revenue and continuing mortgage loan repurchases. It will therefore not originate any new loans, effective immediately, and the remaining loans owned by the company are expected to be sold to investors within approximately 30 days.
Washtenaw said it will lay off all employees involved in the origination of new loan production immediately, and it does not know whether or not it will be able to pay those employees severance.
OK who is next?
If nothing else, expect a lot of layoffs and hard times ahead for mortgage loan originators, real estate agents, and title insurance companies.
Mike Shedlock / Mish/