Update - 2008-01-28: More word is coming in regarding the timing of layoffs. This came in today:

“The crappy part about how they layed us off yesterday was some of us received our severance packages on our doorsteps before the managers were told about it and before the conference call was held. I received my severance package at 10am and the call wasn’t until 11am. This company doesn’t really care about the displaced employees. I have been in this business [a long time] and it was by far the worst company I have ever worked for. I agree with the other employee that I expect them to be on the imploded list by the end of the next fiscal quarter.”

We will continue to update information on BankUnited as it comes in.

Original post - 2008-01-25: Reports have been coming in from across the country that BankUnited FSB of Coral Gables, FL has closed Wholesale operations. Yesterday we received word all lending west of the Mississippi would stop, and the Scottsdale AZ Operations Center was closing. Today we learn these closing include Operations Centers in Oregon, California, and Colorado. We were emailed an official notice that states in part:

“After today, we will no longer accept new loan applications. However, until the end of the day today (5:00 p.m. PST) we will accept loans and lock-ins.”

To view the entire letter, click here.

In a first-quarter earnings review, they show a loss of over 25.5 million, net charge-offs of $6 million, and an additional allowance for loan losses of $118 million. Share prices have dropped from highs of $28 to below $4 at one point in the past year.

The main message from most AE’s is they were told not to tell anybody anything, but we have heard they have 70 to 80 AE’s across the country, with upwards of 400 Op’s and management staff that could be affected. This partial shutdown is expected to cut 45% of the Division.

Their current product mix is Agency and Alt A Agency, but BankUnited was chiefly known for it’s POA’s, including a ‘true’ 90% No Doc (1 loan) Pay Option Arm. Although that product was discarded about 8 months ago, those chickens may just now be coming home to rest on the Balance Sheet.

From one former employee:

“I would say that by March if not earlier, it will all be gone so hopefully the present survivors don’t get too comfy.”

Senior VP (Marketing) Melissa Gracey directed us to this Press Release (.pdf) to define the closings, and rationale.

If you have any information regarding this year’s volume, or current nationwide number of employees, please let us know. With such a strong Retail presense, we don’t know how long this Wholesale division can last in today’s lending climate.