An Indiana-based wholesale lender is abandoning broker business.
First Indiana Corp. made the disclosure in an announcement today.
The Indianapolis-based financial services company, which owns First Indiana Bank, N.A., said the discontinuance of wholesale operations was immediate. Wholesale loans were regularly sold at a gain in the secondary market.
"The general business climate for these types of loans has deteriorated to the point where the future outlook for this segment of our business no longer makes economic sense for First Indiana," Robert Warrington, president and chief executive officer, said in the statement.
The company said it will take a $0.5 million charge in connection with the exit.
First Indiana, which agreed to a $100,000 settlement in June with the U.S. Department of Housing and Urban Development over alleged lending discrimination, will reportedly continue to offer home equity loans through its branches.
Marshall & Ilsley Corp. is slated to acquire First Indiana by early next year, according to a July press release.