In a letter to brokers dated yesterday MortgageIT, a subsidiary of Deutsche Bank, announced it is no longer originating or funding subprime loans. No word on the fate of loans currently in process; as the letter only suggests the ever-nebulous “call for more info.” If anyone hears about loans in process please let us know in the comments. Here is a copy of the letter sent out:
To Our Valued Business Partners:
This is to inform you that, in light of the current conditions in the secondary mortgage market, effective immediately, we are discontinuing our subprime mortgage product offerings.
If we are currently processing a subprime mortgage loan for you, please contact your Account Executive for additional information.
We continue to carefully monitor the markets and will reevaluate our product offerings in accordance with any meaningful market shifts.
You are a valued business partner and we look forward to continuing to work with you now and into the future.
Sincerely,
R.J. Arnett
Managing Director
Wholesale Lending Division
Makes sense to me - with German banks taking the brunt of the subprime meltdown in the Euro-arena I can’t imagine any large European bank effectively justifying their continued presence in the subprime market to their investors.
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[Source: Blown Mortgage]
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