Northpointe Bank announced it will be shutting down its correspondent lending business, which involves originating and purchasing mortgages from independent mortgage banks, community banks and credit unions. The decision comes as part of a strategic shift in the organization, as the bank focuses more heavily on growing its retail mortgage and retail banking services.
This move marks the end of a 15-year run in the mortgage lending space at Northpointe Bank. The bank has handled over $20 billion in mortgage loan processes in recent years, serving as an “essential partner to hundreds of clients across the country.” While the sources of the organization’s mortgages will shift, CEO Paul Dahl said that “Northpointe Bank remains a mortgage lender and will continue to originate mortgages for credit-worthy customers through its retail system.”
Northpointe Bank recognized that the recent changes in the mortgage market, particularly in the correspondent lending business, have posed significant challenges in terms of “customer service and profitability.” As a result, Northpointe Bank has made several changes, including reducing its staff size and modernizing its business processes to keep up with changing market conditions.
This move is the latest indication that banks are re-aligning their operations in the face of an ever-changing mortgage industry. More and more organizations are recognizing the need to evolve with the shifting marketplace. Furthermore, banks are further consolidating their services to focus more heavily on areas where they are particularly well-positioned. As banks prioritize their service scope, they may make the decision to wind down some business operations in order to focus their resources on areas of higher return. Northpointe Bank demonstrates that no lender or organization is immune from changes in the mortgage industry.
You can read this full article at: https://www.housingwire.com/articles/northpointe-bank-to-shutter-its-correspondent-lending-business/(subscription required)
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