Morgan Curtails U.S. Mortgage Ops, Shuts UK

Morgan Stanley has announced that it will scale back its residential mortgage operations in the United States and shut down Advantage Home Loans, its U.K.-based residential mortgage lending business. The company cited the continued deterioration of the mortgage markets as the reason for the moves, which it said will affect about 1,000 employees in the United States and the United Kingdom. Morgan said it will continue to service mortgage loans in the United States through Saxon Mortgage Services Inc., Fort Worth, Texas, and continue to offer residential mortgages to retail brokerage clients through Morgan Stanley Credit Corp. "Given the continued dislocation in the mortgage markets, we have restructured our residential mortgage business to ensure we are appropriately positioned for the environment going forward," said Anthony Meola, chief operating officer of Morgan Stanley's U.S. residential business. The company can be found online at http://www.morganstanley.com.