Regions Bank is in the process of shutting down three mortgage production offices that are “outside of [its] traditional branch network footprint.”
Unlike the bank’s 1,250 full-service branches, these three locations only offered mortgage products. A company spokesperson said all branches can “refer customers to mortgage loan officers who are based in dozens of locations across [its] retail banking footprint.”
Offices set to sunset in mid-October are located in Kansas City, Chicago and Cincinnati, a company spokesman confirmed. A little over two dozen employees will be impacted.
“As a normal course of business, we evaluate our network of locations to ensure we are leveraging our resources and making investments where customers need them most,” the company spokesman said. “After careful consideration, we have decided to close three mortgage offices that are outside of our traditional branch network footprint.”
The Birmingham, Alabama-headquarted bank is also making “a limited number of reductions” in its home loan direct division corresponding with changing customer needs as interest rates have risen, the spokesman added.
Interest rates most recently hovered around 7%, which has continued to put pressure on the mortgage lending business.
Loans issued from the three soon-to-be closed branches “will continue to be serviced by Regions, and [its] digital tools, as well as [its] wide network of mortgage professionals in several states remain available to meet customers’ needs.”
In the second quarter, the bank reported its total revenue increased 12% to $2 billion on both a reported and adjusted basis, driven by growth in net interest income. Meanwhile, the bank’s mortgage non-interest income dipped by almost half to $26 million, down from $47 million in the second quarter of 2022.
The bank’s presence stretches along the Southern and Midwestern part of the country, with offices in 15 states.
Regions Bank is not the only depository choosing to downsize its presence in the mortgage market.
Earlier this year, Wells Fargo left the correspondent lending channel, North American Savings Bank Financial and its thrift subsidiary NASB confirmed that it is exiting its consumer-direct business, while Republic First announced plans to end home lending in May.