First Internet Bank is Shutting its Consumer Mortgage Business
First Internet Bank, the first national Internet-only bank, is shuttering its consumer mortgage business on March 31. The bank, which has been in business since 1999 and is based in Indiana, has been in the consumer mortgage business since 2001, with loan products available in 47 states. The bank has decided to focus more on its core business as the challenge of competing in the highly regulated and low-margin consumer mortgage industry has become “too great.”
The First Internet Bank is a digital-only bank that was established in 1999 by Chairman and CEO David Becker. It offers a variety of banking services and products, including consumer banking, commercial banking, and SBA lending. The bank is FDIC-insured and its deposits are protected up to $250,000 per account.
In the consumer mortgage space, First Internet Bank offered a variety of mortgages — Conventional, FHA and VA, loan products for first-time buyers and refinancing. The bank also offered a broad range of jumbo mortgages and, until recently, manufactured homes.
The bank is not ruling out returning to the consumer mortgage business in the future. It is, however, exercising caution and will continue to focus on its core products. The bank’s decision to exit the consumer mortgage business is based on the fact that it is a highly regulated and low-margin industry, and the challenge of competing in the field has become too great. This is particularly apparent in light of the tough economic environment in the U.S. right now.
You can read this full article at: https://www.housingwire.com/articles/first-internet-bank-is-shuttering-its-consumer-mortgage-business/(subscription required)
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