Sterling Bank & Trust mortgage partners closed their new business just months after the Michigan-based bank announced an outsourcing deal.
Professional digital mortgage platform Promontory MortgagePath announced last week that it will be shutting down after seven years in business.
A spokesperson for Promontory quotes “Unprecedented and Rapid Deterioration of Mortgage Market” for closure, The statement was reported last week by trade publication National Mortgage Professional.
Sterling Bank & Trust appointed Promontory as its outsourcing lending provider earlier this year. Statement from bank.
The bank will continue to accept loan applications through Promontory through the end of November.
Thomas O’Brien, Chairman, President and CEO of Sterling, said: “We have enjoyed our partnership and understand Promontory’s challenges and the current economic impact on the mortgage industry as a whole. Sterling is committed to our customers and will work closely with Promontory throughout this transition. continue to do.”
It follows a series of rate hikes this year as the Federal Reserve (Fed) tries to combat steeply rising inflation.
Last week, Wells Fargo reported a significant drop in the number of loans in progress and its mortgage pipeline. The bank relies heavily on mortgage income compared to its largest competitors.
In October, a Wells Fargo spokesperson indicated that the current market could lead to job cuts. In a statement they said: “Our recent changes are a result of the broader interest rate environment and are consistent with the reaction of other lenders in the industry. We are adjusting.”