In an effort to make a Wells Fargo - Wachovia merger happen, the Citigroup buyout offer of Wachovia was rejected. Wells Fargo proposed a better deal (about $7 a share) without government help and Wachovia’s board accepted.

Wells Fargo Wachovia Merger

Wachovia Statment about the merger in a press release reads,

“Wachovia Statement: Wachovia’s Board Approves Wells Fargo Merger Proposal

Wachovia earnings today fell dramatically 49 cents below expectations, an $8.9 Billion loss, and a cut of the dividend by 87%. Wachovia earnings release also mentioned they are no longer operating a mortgage wholesale lending division.

Wachovia is not the first bank to close the door on mortgage brokers. Bank of American did so a few months back as well.

Wachovia Mortgage Corp is a division of the Parent Company, Wachovia Corp headquartered in Charlotte North Carolina. Wachovia Corp became the fourth largest US banking operation when it merged with First Union in 2001.

Wachovia Mortgage Corp

We, years ago, had a broker relationship with Wachovia Mortgage as we had followed a very bright account executive who had recently switched companies. However, he wasn’t there long (less than 6 months if I remember) and it wasn’t like him to hop from company to company.