• Most Popular
  • Most Shared

UPDATE 1-AIG to curtail mortgage business at unit

Tue Jun 17, 2008 1:08pm EDT

Stocks

   

(Adds detail from regulatory filing)

Stocks  |  Bonds

NEW YORK, June 17 (Reuters) - A unit of insurer American International Group Inc (AIG.N) will cease to offer certain mortgages, the company said on Tuesday.

Wilmington Finance Inc, a unit of AIG wholly owned American General Finance, will cease to offer mortgages through brokers effective immediately and cut 335 jobs by the end of the year, according to a statement.

Wilmington will honor existing loan commitments and maintain a reduced retail operation, it said.

The company, which has specialized in residential real estate loans, including subprime, that were then sold off to third parties, cited "extraordinary developments in the mortgage banking industry during the past year" for the moves, according to a separate regulatory filing. The company said it does not see the market improving any time soon.

The Evansville, Indiana-based company said it expects to take a pre-tax charge in the second quarter of about $27 million related to lease termination costs, fixed asset disposals, intangible impairments and one-time termination costs. (Reporting by Lilla Zuill; editing by Mark Porter and John Wallace)

Stocks
Bonds


More from Reuters

An image of U.S. President Barack Obama is seen in an exhibition at the Nobel Peace Centre in Oslo December 9, 2009. Two leading international human rights groups gave Obama mixed reviews on his human rights record on Wednesday, a day before he is slated to accept the 2009 Nobel Peace Prize in Oslo. Human Rights Watch and Amnesty International urged Obama to use his acceptance speech on Thursday to renew U.S. leadership on human rights after its position was undermined by abuses committed during the Bush administration's war on terrorism. REUTERS/Chris Helgren

Copenhagen: What of Obama?

President Barack Obama’s decision to attend the climate talks in Copenhagen is said to show the White House is serious about pursuing a deal to curb global warming. What should Obama commit to on climate change? Share your views.  Full Article | Related Story 

    Climate Conference
    A crown in a file photo. REUTERS/File
    Special Report:

    No longer king of the hill

    When times were good, hedge fund managers could do what they wanted and people still lined up for a piece of the action. What will the post-crash, post-Madoff, post-Galleon hedge fund universe look like?  Full Article 

    Hedge Funds

    "There will be times when nations...will find the use of force not only necessary but morally justified."

    President Barack Obama,
    during his acceptance speech for the Nobel Peace Prize
      Barack Obama