A decision has been made to close down the wholesale mortgage lending unit of Walter Investment Management Corp.
The Tampa, Fla.-based company acquired GTCS Holding LLC in 2011 as part of a strategy to increase “recurring, fee-based revenues generated from an ‘asset-light’ platform.”
The $1.1 billion acquisition included mortgage servicing rights on $38 billion in second liens, subprime mortgages and manufactured housing loans.
GTCS was also known as Green Tree.
Late Wednesday, Walter announced that Green Tree Servicing LLC has made a decision to exit the wholesale mortgage lending business.
The notice indicated that the wholesale channel has been a relatively small part of the company’s origination business.
Less than $1 billion of Walter’s $13.3 billion in residential originations during the first nine months of 2013 came from the wholesale division.
“As previously indicated, the wholesale originations channel was not expected to contribute to earnings for 2013,” the statement said.
The exit from the wholesale mortgage business is expected to be completed by April.
Around 60 employees impacted by the move are being provided with assistance. Walter reports a total staff of 6,400 employees.
Walter noted that it will continue to assist mortgage broker clients during the transition period.
“Walter Investment remains committed to growing its origination business through its core retention, retail and correspondent channels,” the announcement stated.
