A Michigan-based lender will stop funding loans next month but will continue servicing mortgages.
Heartwell Mortgage Corp. is accepting locks on retail loans through the end of the month, spokesman Jason Bird told MortgageDaily.com Wednesday.
By mid-July, the Grand Rapids-based company should have all loans funded and no longer engage in mortgage banking after over 35 years of doing so.
The decision to dissolve retail operations at Heartland, which focuses on conventional and conforming products, follows last week's shutdown of the wholesale and correspondent channels, according to the spokesman.
"The current housing environment made it difficult to get the production levels necessary to sustain ourselves," Bird said.
However, Heartwell's servicing division will remain active, he noted. The company services a large portion of Michigan State Housing Development Authority loans, and "we'll continue do that as well as service our existing portfolio."
Heartwell notified retail employees of the decision to cease funding yesterday, Bird said. Of about 125 employees throughout all operations, only about 20 to 25 will remain in the servicing area.
Bird did not have Heartland's production and servicing volume numbers at hand and said it was unlikely the company would disclose such information at this time.
The privately owned company has eight branches located across Florida, North Carolina, South Carolina, Virginia, Indiana and Michigan, according to its Web site. It also provides loans in Ohio, Missouri and Wisconsin.