FirstBank exits wholesale mortgage lending

The Tennessee bank is selling its wholesale operations to Rushmore Loan

FirstBank exits wholesale mortgage lending

 Tennessee-based FirstBank has agreed to sell off its wholesale mortgage lending operations to Rushmore Loan Management Services.

Upon closing the transaction, Rushmore will acquire all of the assets and personnel related to the channel. This followed the announcement of FB Financial, FirstBank’s parent company, that it has already sold its third-party origination channel to Renasant Bank earlier in June.

FB Financial projected a record of nearly $1.1 million in restructuring expenses and an additional $1.5 million to cover transaction-related costs, severance, and other items related to its mortgage operations.

Despite the impact of the restructuring charges, the firm anticipates an increase in its operating results from its total mortgage operations in the second quarter over the first quarter of 2019.

Without disclosing the financial terms, FirstBank said the sale of its correspondent channel would close early in the third quarter.

“We are pleased to have found new homes for each of our third-party origination channels in the second quarter,” said Chris Holmes, president and chief executive officer of FB Financial. “These sales allow us to focus more on our customer-centered retail and consumer-direct channels.”