CSB Mortgage - Wholesale, Agency

CSB Mortgage sent a bulletin to brokers announcing the closure of their Wholesale mortgage division. From President Jeff Williamson:

"The market has deteriorated to the point where we can no longer maintain a profit at present volumes. We will accept rate locks through Friday, September 5th. Loans locked in the pipeline as of that date will be honored. All loans must close and fund by our last day of business, October 15th."

CSB Mortgage is a division of Citizens State Bank of Hudson, Wisconsin, offering Agency, Alt-A, Non-conforming and Jumbo loans in the states of Minnesota and Wisconsin as noted on their web site. In an email Williamson said, "We were a small wholesale shop, but, we had very loyal clients and a professional staff." Responding to our request to speak further he remarked, "I'm going to be buying my staff lunch in a bit." In 2007, that staff was comprised of twelve people - today they laid off seven.

CSB Mortgage had established relationships with between 35 and 40 brokers in the two states. Peak monthly volume reached $30 million in 2003, lagging to $12.4 million per month for 2007, with current volume down to about $6 million a month. That steady volume decline was said to be the determining factor in the decision to cease operations.

Their bulletin stressed that Citizens State Bank "will continue to maintain a retail mortgage presence."