Business operations at the mortgage lending subsidiary of a Massachusetts bank are grinding to a halt thanks to declining production.
In 1988, John F. Gallagher established 1-800 East West Mortgage Co. as a mortgage brokerage on the North Shore of Massachusetts Bay.
It was acquired in November 2000 by Commerce Bank & Trust Co., and in 2007 it moved its entire operation from Peabody, Mass., to Marlborough, Mass.
Today, 1-800 East West Mortgage’s website is just a shell.
A notice on the home page says, “We are performing some maintenance on our website.”
That’s because the operations of the company, which originated around $450 million a year, have largely been suspended, The Telegram & Gazette reported Monday. Around half of the company’s 25 employees have been laid off.
Commerce Bank President and Chief Executive Officer Brian W. Thompson reportedly told The Telegram & Gazette that rising rates dried up refinance originations, and options are being considered for the subsidiary.
