Industry News

D.C.-area bank to close mortgage banking subsidiary

Alliance Home Funding missed years of profit targets

Alliance Bankshares Corp. says it is closing its mortgage banking subsidiary, Alliance Home Funding LLC, which employed 43. Chantilly, Va.-based Alliance Bankshares will bring 10 Alliance Home Funding employees into an in-house mortgage banking division, which will offer home loans in the Washington, D.C., metro area, the company said. Closing Alliance Home Funding will put an after-tax dent in the bank's fourth-quarter earnings of between $350,000 and $450,000, including employee severance pay, systems charges and subleasing costs. Alliance Bankshares President and Chief Executive Officer Thomas A. Young Jr. said the mortgage-lending subsidiary, created in 2001, has not met profit expectations in recent years. A series of steps taken this year to improve results "have not yielded the desired outcome," Young said in a statement. With "a continued modest outlook in the housing sector, we felt a radical change was necessary." The new in-house mortgage lending division will have ...

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