For borrowers in Florida, one local community bank is bucking the trend by leaving the national mortgage market and focusing exclusively on helping its local customers.
Florida Community Bank (FCB) recently announced its decision to stop originating and servicing mortgages through the secondary mortgage market. Instead, the bank will shift its focus to providing origination and servicing solutions to its current customers in Florida. By concentrating solely on its local market, FCB believes it can offer its customers greater value with customized loan products.
In a statement, FCB's President and Chief Executive Officer, Kent Ellert, explained the bank's reasoning behind the move. He said, "We believe this shift will help us better serve our customers in our local Florida markets. We are excited to be able to provide our customers with more options, choice, and value that are tailored to their individual needs."
The decision is significant because FCB is one of the few lenders that has the capacity to offer mortgage servicers and correspondent lenders access to the national mortgage market. By removing itself from the national market, the bank can now focus its resources more intently on helping its local customers.
For current or prospective homebuyers looking for a mortgage, this could be a great option as banks like FCB often have more flexibility in terms of loan programs or loan terms than larger lenders. Further, as the bank increases its focus on local markets, it may be able to offer more competitive interest rates than larger lenders.
For banks like FCB, the decision to leave the national mortgage market doesn't come without risks. For instance, by concentrating solely on local markets, the bank could experience slower growth due to limited exposure. Additionally, the local markets can be more volatile, meaning the bank could face a higher risk of local economic downturns.
Still, FCB plans to move forward with its decision to refocus on helping its local customers. This shift towards local mortgage lending could create more opportunities for borrowers in Florida in the years to come.
Florida Community Bank (FCB) has recently announced its decision to leave the national mortgage market and focus its resources solely on helping its local customers in Florida. By leaving the national market, FCB can now customize loan products to better serve its local customers. This could be beneficial for borrowers looking for competitive interest rates and more flexible loan programs than they would get from larger banks. While there are some risks to local lending, such as having slower growth and more volatile markets, FCB believes it will be able to offer its customers greater value with its tailored loan products. The decision of FCB to refocus its efforts on local mortgage lending could create more opportunities for homebuyers in Florida in the coming years.
This article was contributed on Nov 02, 2023
