Bucking the growing "bricks and clicks" trend in the mortgage industry, AppOnline.com Inc. of Melville, N.Y., has announced plans to separate its branch and Internet operations in two companies.

The lender said it would spin off its Internet operation into a newly formed company through an initial public offering this summer. The remaining AppOnline operation, Island Mortgage, which has 58 offices in 22 states and focuses on FHA, VA, and subprime loans, is to be given a name that reflects its low-tech approach.

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