twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Wholesaler Closes a Second Time

Pacific Mercantile Bank closing wholesale channel

Aug. 13, 2012

By staff

A wholesale mortgage lender that previously closed down then subsequently reopened is throwing in the towel for a second time. The company wants to reallocate its capital.

Pacific Mercantile Bank closed down its wholesale business in 2005. At the time, the financial institution blamed its decision on increased costs, inconsistent results and excessive capital needed to improve the unit. Capital would instead be used for its growing commercial lending business.

But four years later, prompted by a dearth of commercial mortgage capital and weak demand for commercial loans, the firm was back in wholesale mortgage lending. Pacific Mercantile Bancorp President and Chief Executive Officer Raymond Dellerba predicted at the time that an economic recovery would ensue and home prices would stabilize -- pushing up demand for home purchase financing over the following months.

Now the Costa Mesa, Calif.-based company is once again abandoning originations from mortgage brokers.

In its second-quarter earnings report, Pacific Mercantile said that it undertook a recent review of its mortgage banking business to determine how it could redeploy capital resources to its core commercial lending business. The review was in anticipation of an eventual increase in interest rates.

The mortgage operation had grown rapidly over a short time period, and the bank wanted to see how it could reduce costs and increase efficiency.

"Based on that review, a decision has been made to focus our mortgage operations entirely on our direct-to-consumer retail channel and to exit our wholesale mortgage business, which depends on independent mortgage brokers to originate mortgage loans for us," the report stated.

No more wholesale submissions will be accepted from mortgage brokers after Aug. 31.

Any submissions received before the deadline will continue in process until funded.

The move is expected to significantly reduce residential originations and lead to lower subsequent mortgage banking revenues.

"Nevertheless, in our view, this action is in the best interests of the company and our shareholders, because we believe that it will enable us to build a stronger foundation for achieving improved profitability in the future, reduce and control our operating costs and reduce interest rate and other risks inherent in the wholesale mortgage business, in order to enhance the value of our banking franchise in the future," according to Pacific Mercantile.

More than $97 million in residential loans were on the balance sheet as of June 30. Total assets were $1.1 billion.

Second-quarter earnings before taxes were $1.7 million, off from $1.9 million in the year-earlier period. It was the sixth consecutive quarter that the company operated in the black.

Wholesaler Back From the Dead
A Southern California wholesale lender that shut down well ahead of the mortgage meltdown is back.

Wholesaler Shutting Down
A Southern California bank is shutting the doors of its residential wholesale mortgage lending operation so it can focus on another business.

Pacific Mercantile news

next story

back to current headlines

Wholesale Lending News | Directory | P r i cing Engine | Originator Newsletter
News about wholesale lenders, correspondent lenders and wholesale mortgage lending programs. Alt-A, subprime and other niche loan programs. Lawsuits between wholesalers and brokers.

Bank news

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders