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High mortgage rates, low transaction costs, and intense competition prompted BayFirst National Bank to close its mortgage business and lay off workers.
BayFirst National Bank’s parent company is BayFirst Financial Corp. Last week, the council announced that it had begun closing down the country’s network of transfer agencies.
The bank will continue to offer mortgage services through its regional offices in Florida, the company said.
“Given the impact of the decline in mortgage volume over the past several quarters on the company’s operating performance and the uncertainty of the medium-term outlook for mortgages, we have made the difficult decision to close our nationwide network of residential mortgage offices,” said CEO Anthony Leo.
Last week. In a prepared statement, he said: The Bank of Florida plans to focus on building a community banking franchise and small business loans (SBAs), he said.
SBA lending through the bank’s CreditBench division has reached record levels and continues to add staff, Leo said. According to the US Small Business Administration, BayFirst ranks as the 8th most active SBA lender in the country.
From Sept. By the 22nd, it had approved 906 SBA loans totaling $388.8 million. The bank opened its eighth branch in West Bradenton, Fla., in September and is spearheading branch expansion in the Tampa Bay area, management added.
The 30-year fixed rate has doubled to 6% since January, and lenders have cut interest rates to reduce costs. Almost all borrowers have multiple fees in some banks.
For example, Santander Bank closed its mortgage business. The Bank of Spain said in February that it will “focus its efforts on products, services and digital features that help meet the changing needs of our customers.” Santander is still in the mortgage business.
BayFirst estimates a $3 million to $4 million tax charge related to closing its mortgage business.
The transaction is subject to all required disclosures and approvals and is expected to close on November 9. The bank said on the 24th.
Founded in 1999, the bank has generated $1.6 billion in revenue over the past 12 months, with average monthly revenue of $123 million, according to remittance technology platform Modex.
The bank has 232 mortgage advisors registered with the National Multistate Licensing System (NMLS).
Reference Source: Housing Wire
