Indianapolis-based First Indiana Corp. said its lead bank would no longer originate mortgages from loan offices outside Indiana.
First Indiana, the $1.8 billion-asset holding company for First Indiana Bank, said it would refer its mortgage business in Florida, North Carolina, and Oregon to Heritage Financial Group, an Indianapolis-based mortgage lender. First Indiana will continue to make construction loans from those out-of-state offices.
Under the partnership with Heritage, First Indiana will receive a fee when Heritage sells a mortgage in the secondary market. While the fee is less than what First Indiana would receive if it sold the mortgage itself, the alliance will allow First Indiana to reduce its loan offices' overhead, the company said.
First Indiana maintains a similar partnership with Peoples Mortgage in Phoenix, which handles its mortgage business in Arizona.