Lincoln Service Mortgage Corp. the nation's first wholesale lender, will be folded into its parent. Great Financial Bank, by yearend.
The unit is to be known as Great Financial Mortgage.
A spokesman for Louisville, Ky.-based Great Financial was unsure if any staff cuts would result from the organization but said the company plans to retrain as many employees as possible.
Lincoln, based in Owensboro, Ky., invented the practice of buying home loans from lenders and mortgage borkers more than 20 years ago. It merged with Great Financial in 1982.
Recently, Lincoln has been plagued by downwardspiraling loan production as a result of higher interest rates. In May, it axed 130 employees, 20% of its work force. And last month, it sold its West Coast wholesale lending operation.
