Residential units shifted from commercial lending umbrella
By MortgageDaily.com staff
12/22/2005

Washington Mutual Inc. is realigning its subprime and warehouse lending units.

The Seattle-based financial services giant will shift responsibility for subprime subsidiary Long Beach Mortgage Co. and warehouse lender Mortgage Banker Finance from the commercial group to the home loans group, according to an announcement Wednesday.

The move is reportedly designed to create "a unified SFR mortgage lending strategy to better leverage all of Washington Mutual's distribution points," better serve borrowers and improve operating efficiencies.

The single management team for both prime and subprime lending will be headed by David Schneider, president of single-family lending operations, the statement said.

In October, MortgageDaily.com reported that a new unit of Long Beach Mortgage had begun buying loan portfolios of as much as $100 million and planned to buy and securitize about $5 billion of subprime mortgages this year through the new conduit unit.

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