Guaranty Bank - Correspondent - Hybrid & Pay-Option ARMS
"All interest rate commitments currently in place will be honored if the associated loan is closed and delivered within the applicable lock period, and the loan is purchased on or before June 30, 2008. Loans not purchased by June 30th will be returned to the Seller. Interest rate commitments will continue to be offered through Friday, May 9th. Any new interest rate commitments must have a lock expiration date on or before June 30th with all associated loans being purchased on or before June 30th."
It goes on to say, "Elimination of the Correspondent Lending Unit alows Guaranty to increase its focus on consumer lending within the Retail Banking Franchise and continue as a significant lender in the Mortgage Warehouse Lending Market."
One tipster wrote simply: "Lost another correspondent lender."
According to a report of First Quarter 2008 Results on their web site, they "undertook an efficiency review during the first quarter 2008, which resulted in the elimination of 135 jobs," or about 5% of the bank's overall workforce, although it was not specified how many, if any of those, were specific to the Correspondent Lending unit. Chief Banking Officer Kevin Hanigan is quoted as saying "Our decision to exit the retail mortgage banking business in 2004 and 2005 has allowed Guaranty to avoid some of the issues facing other financial institutions..." A graph in their Q1 Earnings Call presentation (pg 17) indicates origination volume for the first quarter of 2008 was about $2.3 million average per month, down from just over $5 million in 2007 and $3.3 million in 2006. Prior volume across all origination channels in 2005 exceeded $28 million per month.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.