|The national wholesale lending subsidiary of an 86-year-old bank has halted new business. The move is a blow to the 5,000 primarily small mortgage brokers that the unit served.
GB Mortgage says it caters to small brokers.
"Many brokers don't produce the huge numbers needed to get the attention of today's mega-wholesale lenders," a promotional message on its Web site says. "We know the small broker is the heart and soul of this industry."
The company reports more than 5,000 third-party customers in 47 states.
But the wholesaler has apparently changed its tune.
"Effective today, April 30, 2009, GB Mortgage, the wholesale lending division of Guaranty Bank, will no longer accept new loan applications," a message posted online says.
Guaranty Bank, FSB, reports that it is a $2 billion institution based in Milwaukee with 175 branches in Wisconsin, Illinois, Minnesota, Michigan and Georgia. It was founded in 1923.
GB Mortgage said it will honor existing locks. Approved loans that are not yet locked must be locked no later than May 8.
GB Mortgage was created in 2007 with the merger of GN Mortgage and second mortgage lender GB Home Equity. Its sister company, Shelter Mortgage LLC, originates mortgages on a retail basis. Other related companies include:
- 1862 Mortgage
- BestBank Mortgage
- Carolina One Mortgage
- Community Bank Mortgage
- Dynami Mortgage
- Fairfield Mortgage
- First Sterling Mortgage Services
- Guaranty Mortgage
- Guaranty Mortgage Services
- Oxford Bank Mortgage
- Primacy Home Loans