Minnesota bank launches mortgage department
Venture Bank, based in Bloomington, Minn., launched a new mortgage department this month. The mid-sized bank, with more than $256 million in assets, will write residential mortgages and group-home products. Legal entities take out group-home loans to provide housing for clients in need of medical care. Venture Bank Vice President Colleen Karst expects the new department to write roughly $15 million in new loans over the quarter. She said they have approval from two outside investors and verbal approval from Fannie Mae. Minnesota home prices fell 9% in May from one year ago to a median sales price of $139,000, according to the Minnesota Association of Realtors. Sales for the month fell 16% over the same period. But Karst said opportunities remain. "There's definitely an opportunity just to serve the existing customer base," Karst said. The bank will use the XetusOne Loan Management System to process new mortgages. Venture can use the software to manage the loan through origination, subordination and even modification if needed. "We have some loans outside the box that very few institutions can offer," Karst said. "These products have particular needs and XetusOne can easily accommodate them." Write to Jon Prior. Follow him on Twitter @JonAPrior.