Barnett Taps Bank Veteran to Run Its New Consumer Lending Unit

Barnett Banks has shifted its mortgage program into a new unit that will house all consumer lending operations and has named a highly regarded business banker as its boss.

Douglas K. Freeman, who built the Jacksonville, Fla., bank's small- business lending program, will now apply his skills to the consumer side as chief lending executive.

Mr. Freeman, who joined Barnett five years ago from Wells Fargo & Co., said he plans to "enhance the revenue potential and exploit some of the business opportunities" that the new consumer unit presents.

In making the leap from corporate banking to consumer lending, Mr. Freeman is taking on responsibility for Barnett's new mortgage venture with BancBoston Mortgage. Under that agreement, Barnett will continue originating loans, while servicing is handled by a new company owned by the bank, BancBoston Mortgage, and two venture capital groups.

Mr. Freeman said he is convinced that Barnett has chosen the right path in teaming with BancBoston Mortgage.

"Any joint venture is a challenge," he said. "But our deal is absolutely the right thing to do."

He said the venture will provide economies of scale "and allow us to focus on what we do best - lending."

Mr. Freeman will oversee residential mortgage originations, subprime lending through the bank's Equicredit subsidiary, and direct consumer lending. He will also have responsibility for credit cards and credit life insurance.

The new structure brings together mortgage units and a number of consumer services that had operated independently. Some of the responsibilities Mr. Freeman is assuming were handled by Lee H. Chaplin Jr., who plans to retire.

Bank officials decided it was the right time to bring the various consumer programs together so they could operate more efficiently.

Industry analysts applauded Barnett's choice to lead the new program.

Mr. Freeman, they said, has the management skills to oversee the consumer operation even though his background is in business banking.

"It's really not as opaque as it seems," said Moshe A. Orenbuch, banking analyst with Sanford C. Bernstein & Co. "It's more the technique that's important."

Mr. Orenbuch added: "He has the credentials. He's done a very strong job for them on the small-business front."

In fact, Mr. Freeman does have consumer banking credentials. In the late 1980s, he was a retail executive as CNS Corp. and was chairman of the Consumer Bankers Association.

M. Alex Crotzer, former president of Barnett's biggest bank unit, was promoted to Mr. Freeman's former spot as chief business banking executive.

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