A bank out of the Northeast will shutter its mortgage banking business and turn to another financial institution to provide mortgage services.
Union Mortgage Group Inc. was founded in 1986. Its LinkedIn company page indicates that headcount stands between 158 and 200 employees.
From its base in
Glen Allen, Virginia, the company tells prospective borrowers on its website, “At Union Mortgage Group, we like to make you feel at home.”
Parent
Union Bankshares Corp. said in a 10-Q filing with the Securities and Exchange Commission that mortgage originations were $93 million during the first quarter — making it a small player in the big business of home lending.
In addition to standard mortgages, its offerings include government programs, construction lending
and home-equity lines of credit.
But Union Mortgage is being wound down, according to a statement Wednesday.
The announcement indicated that Union Bank & Trust has reached a definitive agreement for The Federal Savings Bank to begin providing mortgage services at Union Bank locations.
“We have conducted a careful review of UMG through the lens of Union’s strategic priorities and concluded the best way to offer a mortgage loan solution is through allowing The Federal Savings Bank to offer its mortgages from Union locations instead of operating UMG as a vertically integrated, stand-alone mortgage subsidiary,” Union Bankshares Corp. President and Chief Executive Officer John C. Asbury said in today’s statement.
But “the vast majority” of Union Mortgage’s employees are expected to be hired by The Federal Savings Bank.
In fact, the Chicago-based
bank said it plans to hire more mortgage professionals to support of ongoing efforts and grow the business.
