Citing an “unforgiving compliance environment,” Denver-based Titan Lenders Corp. is closing its general fulfillment division as of Jan. 31. The soon-to-be shuttered division includes underwriting, closing, funding and post-closing for retail mortgage lenders.
"General fulfillment for retail lenders has always been a high-touch, low-margin business,” Titan CEO Mary Kladde said. “However, after careful consideration of all our business units, we have decided to shutter the division. We can no longer operate in retail to our high standards due to the increasing cost to originate and the unforgiving compliance environment.”
Kladde said that operating up to Titan’s standards would have been “even more challenging” with the advent of the integrated disclosure rule in 2015, because it would require Titan to take on additional risk in closing loans.
"As always, Titan will be staying fully abreast of the compliance requirements associated with the integrated disclosures,” Kladde said. “Our efforts in this area will focus on document auditing to ensure compliance with these new regulations.”
Moving forward, Titan will focus its business on its other services geared toward investors and servicers, including MERS audits, data reconciliation, document custody and whole loan purchase review, and the company’s jumbo correspondent investment subsidiary Titan Capital Solutions.
"While it has been our pleasure to meet our retail clients' general fulfillment needs for the last seven years, Titan views this change as a positive," said Titan EVP Ruth Lee.
"The net result of exiting retail general fulfillment will be an improvement in service to all of Titan's investor clients," Lee added. "This will allow Titan to grow past its legacy channel and continue to adapt to the market and address investors' operational needs."