northpoint bankA regional bank headquartered in Michigan will walk away from its correspondent lending business to focus on its retail lending, mortgage warehouse financing division and specialty loan service business.
Thank you for reading this post, don't forget to subscribe!“Due to the significant contraction in the overall mortgage industry, we have made the difficult decision to exit the correspondent lending business,” said Chuck Williams, president and CEO, in a statement.
The regional bank replied to the e-mail that the last day of funding is April 28.
Northpoint was the 24th largest correspondent lender inside mortgage finance, Analog production posted $2.45 billion in the first nine months of 2022, accounting for 41.7% of its total origination. IMF data showed that third quarter correspondent volume declined to $552 million in Q2 2022, down 29% from $780 million in the previous quarter.
“Northpointe Bank values its valued customer relationships and is committed to providing superior financing solutions to its retail lending consumers and warehouse financing customers,” Williams said.
Insured by Northpoint, a private depository institution Federal Deposit Insurance Corporation (FDIC) was founded in 1999 with a focus on residential mortgage loan origination and servicing.
The regional bank conducts its mortgage origination business through a network of 62 retail loan loan production offices, according to a report in . Fitch Ratings Published in April 2022.
Last year, Northpoint expanded its home loan centers to eight states — Arizona, California, Florida, Georgia, Hawaii, Minnesota, Nevada and Texas, according to a Northpoint release in October.
Become an Approved Seller and Servicer for Northpoint Freddie Mac in 2013, fannie mae in 2014 and ginnie mae In 2016. With a national servicing footprint, the bank sells most of its mortgage servicing rights production on a flow basis to third-party investors with whom Northpoint has negotiated sub-servicing agreements.
The rising rate environment also had an impact on Northpoint’s origination in 2022. According to the mortgage data platform, production is set to drop 25% to $5.49 billion in 2022 from last year’s volume of $7.29 billion. Modex.
NorthPoint is the latest depository lender to spin off its correspondent lending business Wells Fargo had announced his exit from the channel last month. Wells Fargo Bank executives have consistently expressed concern about “reputational risk” when financing large amounts of loans originated from other firms.
Pennymac Financial The channel is the largest correspondent lender with originations of $65.9 billion in the nine months to 2022, according to the IMF. amerihome mortgage Correspondents ranked second in channel production during the same period with $38.2 billion, followed by Wells Fargo with $37.4 billion in correspondent production.
