A New Jersey bank has thrown in the towel on its wholesale lending business thanks to the current regulatory environment.
Iselin, N.J.-based Investors Bank, which reports more than $13 billion in assets, operates 100 branches in New Jersey and New York.
It also operated a wholesale lending subsidiary that provided home lending programs for mortgage brokers until last week.
The subsidiary, Investors Home Mortgage, had been in business for a decade.
But on Jan. 10, the Millburn, N.J.-based lender stopped accepting new loan registrations.
“After much discussion, research, and deliberation, Investors Home Mortgage has decided to exit from the wholesale broker mortgage business,” a notice signed by Investors Home Mortgage Senior Vice President Russell J. Tucker stated. “The existing regulatory environment would force us to take important resources away from our primary focus, which has always been, retail mortgage banking.”
The notice indicated that loans which were already registered would “be brought to their natural conclusion.”