Teutsch to Head Meridian Unit
The mortgage unit of Meridian Bancorp has nabbed industry luminary John M. Teutsch to help pump up its "wholesale" lending, or purchases of new loans from other lenders.
Mr. Teutsch, president of the Mortgage Bankers Association of America in 1988, will head a new wholesale division for the Pacific Northwest. Meridian Mortgage Corp., based in Wayne, Pa., is also opening a wholesale division for the East Coast.
In all, Meridian expects to purchase about $800 million of loans next year, up from $300 million this year. Meridian entered the wholesale market in 1990 by acquiring Keystone Mortgage Corp., Indianapolis.
Split for Coast Mortgage
Mr. Teutsch's move follows his acquisition two years ago of a small mortgage unit in Bellevue, Wash. That unit, Coast Mortgage, is now being split up, with Mr. Teutsch and the wholesale operations going to Meridian. The retail division will continue to operate as Coast, under Mr. Teutsch's son, Jay.
"It was always my plan to establish something of value and sell it to someone who wanted to enter the market," Mr. Teutsch said of the wholesale business.