Granite Mortgage, Inc. - Retail - Agency, FHA/VA, Rural

We have just received confirmation that Granite Mortgage Inc. has been completely shut down. The web site can no longer be viewed (see cached). Calls are now directed to parent Bank of Granite. At the time of this posting, we were awaiting a return call from President and CEO R. Scott Anderson for more details on the bank's decision to wind down the mortgage unit.

As previously reported in a 2009-04-15 newsletter (subscription required), Granite Mortgage Inc. changed "from a mortgage lender to a broker" effective the 28th of February 2009, notifying its originators to get "loans closed off [the] warehouse" by the end of the following month. At the time we were told Granite Mortgage would not close down and would remain operating as a retail broker. This was confirmed in the company's 10-Q filing for the first quarter of 2009:

"During the first quarter of 2009 Granite Mortgage changed its business model from lender/seller to a broker operation primarily because of the cost of outside funding. As a result of the change, the mortgage pipeline was liquidating at March 31. Derivative activity associated with pipeline management was also in process of closing existing positions. The liquidating pipeline reduced the related level of warehouse borrowing. At March 31, 2009, Granite Mortgage's warehouse borrowing was $11.9 million, and this amount was subsequently paid in full in April 2009. Also, as a result of this change, a significant part of Granite Mortgage's net loss for the three months ended March 31, 2009 was attributable to severance payments and the final settlement of employment contracts."

According to Manta.com Granite Mortgage Inc. had as many as 70 employees at one time. One source noted it appeared all but one salesperson had been let go as the company underwent the transition. Then on 2009-07-22 Bank of Granite made the following statement in its second quarter 10-Q filing:

"The level of origination activity has declined throughout the period. The subsidiary reported a net loss of $1.2 million for the first six months of 2009,and the Company continues to evaluate the viability of the operation at June 30, 2009."

Based in Winston-Salem, NC Granite Mortgage Inc. was a wholly-owned subsidiary and the retail residential mortgage orginating arm of Bank of Granite headquartered in Granite Falls, NC. Granite Mortgage Inc. had twelve branches in the state and averaged $20.7 million per month in originations for 2007.

We will update this listing as additional information is received. If you can provide more details, please don't hesitate to contact us or post your comments below.