Deutsche Bank AG has decided to pull the plug on its warehouse lending effort, a few months after making a commitment to the business, according to investment banking sources.
"They were gearing up, sent letters out and then cancelled it all," said one banker, requesting his name not be used. A Deutsche Bank spokeswoman did not return calls and e-mails about the matter.
Before the meltdown in the mortgage industry, Deutsche Bank ranked among the top 10 warehouse providers in the nation, according to figures compiled by National Mortgage News.
The company began winding down its warehouse desk in 2007 and had roughly $1 billion in commitments at yearend, compared with $13 billion a year earlier.