WASHINGTON - The Independent Community Bankers of America said Monday that it had chosen Resource Bancshares Mortgage Group Inc. to originate loans for its mortgage unit.
Resource, of Columbia, S.C., will replace ICBA Mortgage Corp.'s current partner, Cendant Mortgage, at yearend. Like Cendant, a unit of New York's Cendant Corp., Resource will close mortgages originated by ICBA member banks in its name, or purchase them from the banks, and resell most of them on the secondary market.
Mike Hindman, the president of ICBA Mortgage, said only about 9% of the more than 5,000 community banks ICBA represents deal directly with the secondary market. The majority work through third parties, like Resource, he said.
ICBA Mortgage currently works with about 850 community banks, most of which have less than $100 million of assets. In its 11-year history, the unit has originated more than $8 billion of mortgages, Mr. Hindman said.
The decision to replace Cendant was not sparked by a business dispute or by customer dissatisfaction, he said.
