N.J. Mortgage Banker Exits Wholesale - for Now

First Interstate Mortgage of New Jersey is pulling the plug on its wholesale division, at least for now, according to an e-mail memo sent out to some of its approved brokers. The memo notes that "effective immediately" the Shrewsbury-based non-depository will no longer accept applications from brokers, but will honor mortgages that have been submitted and/or locked. Company officials did not return telephone calls and e-mails seeking comment. One mortgage banker familiar with the company speculated that the lack of warehouse credit available to non-bank funders may have something to do with FIM's decision, adding that the company might re-enter the space eventually. Towards the end of the memo company vice president Ed Pascocello notes, "Market conditions specific to third-party originators has necessitated this decision."