Fifth Third terminates relationships with wholesale loan brokers
Will focus on correspondent lending
Bob Lewis, the president of Fifth Third mortgage sent a letter to affected parties announcing an exit from the wholesale mortgage business.
Fifth Third will now turn its attention to third-party origination via its correspondent lending channels.
"As you are aware, there have been significant changes within the mortgage industry over the past several years," the letter states. "Fifth Third conducts regular reviews of the industries we serve based on the changing competitive and regulatory environment."
"While this was an extremely difficult decision to make, we intend to build on our leadership position in the correspondent market and remain committed to purchasing loans from smaller financial institutions and independent mortgage companies," he added.
The letter served as an official termination, effective March 14, 2014, of Residential Wholesale Loan Broker Agreements with Fifth Third.
Lewis said he would fulfill as many mortgages as possible that are in the pipeline.
"We appreciate your business throughout the years and hope that we can continue to work together through the Correspondent channel should that meet your needs," Lewis concluded.