Regions Sells Wholesale Unit to M&T

Regions Financial, Birmingham, Ala., has agreed to sell its wholesale mortgage operation to M&T Bank Corp., Buffalo, N.Y., for an undisclosed amount.At year-end, Regions ranked 30th among residential wholesalers, and M&T ranked 40th. Combined, the two wholesale divisions will rank 25th, based on fourth-quarter production. Regions Mortgage table-funds about $3.5 billion a year. Mortgage company chairman Robert Goethe said remaining in the wholesale channel would not "further the company's core strategies of growing its banking franchise and cross-selling Regions products and services to mortgage customers." It was widely known in the industry that the wholesale division of Regions was on the auction block. The sale does not include Regions' nonconforming wholesale division, EquiFirst, which is based in Charlotte, N.C. Regions said it will remain a correspondent lender of both prime and subprime loans.