Washington Mutual Bailing on MBS?
Yet another major bank is bailing on Real Estate, here’s the latest from HousingWire:
A victim of the sustained collapse in the mortgage markets, WaMu Capital will reduce its headcount to between 10 and 20 people from 125. In September, the bank dismissed 100 traders, sales personnel and support staff.
The closure appears to have been coming for the past few weeks. Since early November, WaMu Capital was not providing repurchase agreements and in many cases, did not provide even basic bids and offers for bonds it had sold, according to hedge fund portfolio managers.
This exit will take even more banker capital out of the lending market. No big worry for those with a mortgage payoff plan, but a big problem for those who need new loans or want to refinance.
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