Webster Discontinues Mortgage Services, Takes $40 Million Pretax Provision

Waterbury, Conn.–Waterbury, Conn.-based Webster Financial Corp. announced Tuesday that it will take a $40 million pretax provision in the fourth quarter and close its national wholesale mortgage business, Forbes.com reports.The pretax provision is intended to increase Webster’s credit loss allowance. Because of its discontinued mortgage services, the holding company will record a $22.4 million fourth-quarter pretax charge.Webster said it also may take a $14 million fourth quarter writedown on its insurance business.Excluding liquidation charges, Webster saw fourth-quarter net charge offs of $2.6 million and $5.25 million in additional provision expenses.