Freddie OKs First Michigan Bank to Sell, Service Mortgages
Freddie Mac approved First Michigan Bank to sell and service Freddie-guaranteed loans in the state of Michigan. The approval comes after Freddie terminated its approval of Citizens First Bank on April 16, 2010. The mortgage servicing rights of 6,500 borrowers were transferred to an out-of-state service center. Two weeks later, on April 30, the Michigan Office of Financial and Insurance Regulation closed Port Huron-based CF Bancorp -- the parent company of Citizens First Bank -- naming the Federal Deposit Insurance Corp. as receiver. As HousingWire reported, First Michigan Bank paid the FDIC a 0.75% premium to assume all the failed bank’s $1.43bn in deposits. In addition, the bank agreed to purchase $870m of the failed bank’s $1.65bn in assets. Within 60 days of the acquisition, First Michigan demonstrated financial strength and quality control necessary for approval to sell and service Freddie-guaranteed mortgages in the Port Huron community and throughout Michigan. "We want the community to know we are ready to help them take advantage of today's historically low mortgage rates," said Patrick Ervin, executive managing director of mortgage operations at First Michigan Bank, in a press statement. "The ability for First Michigan to work with Freddie once again allows us to offer mortgages and refinances with servicing and support provided by our local team." First Michigan chairman, president and CEO David Provost added: "The ability to sell and service mortgages locally is important to the people of our communities and is aligned with our goal of helping reignite the growth in Michigan's economy." Write to Diana Golobay.