Wachovia to stop buying loans from mortgage brokers
Wachovia Corp., will stop accepting home loans made by mortgage brokers as it struggles with the fallout from its 2006 acquisition of Golden West Financial Corp.
The move by the fourth-largest U.S. bank in terms of assets takes effect Friday, said spokesman Don Vecchiarello.
About 40% of Wachovia’s home-loan volume in 2007 was made through third parties such as mortgage brokers.
The Charlotte, N.C.-based company will continue to make loans through its offices.