Smaller banks are stepping in to take mortgage market share from big lenders, often by concentrating on local expertise and customer service. "What we're seeing is the community banks and regional market lenders taking a larger market share of residential business," notes Norman Koenigsberg with New Jersey-based First Choice Bank subsidiary First Choice Loan Services. The firm's loan origination volume increased to $2.26 billion in 2012 from $1.2 billion in 2011, and the company will very likely end this year with about $2 billion in originations, says a company spokesman. Koenigsberg sees First Choice Loan Services' expansion as the result of its hiring of qualified talent in regional markets, and a strong focus on purchase mortgages. He says local knowledge is particularly essential to borrowers in competitive and complex real estate markets.
From "A Big Push From Small Lenders"
New York Times (12/27/13) Prevost, Lisa
Community Banks on Road to Recovery, FDIC Says
U.S. community banks rebounded from the recession in 2012 and their recovery continues to move forward, according to a Federal Deposit Insurance Corp. (FDIC) study on 6,141 lenders. Those banks enjoyed a collective profit of $16.4 billion during the year, and their average profit margin topped 1 percent for the first time in five years while the number and rate of community bank failures decreased. "Recent signs point to renewed interest in new bank charters," the FDIC says. "Community banks continued to strengthen their balance sheets in 2012 by reducing problem assets and increasing capital levels." The report determined that community banks' greater profitability was fueled by higher noninterest income and lower loss provisions, which easily compensated for the decline in net interest income.
From "Community Banks on Road to Recovery, FDIC Says"
Albuquerque Business First (12/26/13) Domrzalski, Dennis
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