Summit Financial Group, a holding company with $1.2 billion in assets, plans to sell or close down its residential mortgage loan origination unit, Summit Mortgage, the company said today.

The decision to exit the mortgage-banking business was based on the poor operating results of Chesapeake, Va.-based Summit Mortgage, the company said. Summit Mortgage will cease operations by Jan. 31, 2007, if the company is not sold before then.

Summit Mortgage originates loans for the sole purpose of selling them — it does not service them. At $189.6 million, originations for the nine months ending Sept. 30 were down 20 percent compared to the same period last year, Summit Financial said in its third quarter report. The company attributed the decrease to a reduced response rates to Summit Mortgage’s direct-mail marketing programs.

Origination revenue declined to $4 million in third quarter of 2006, compared with $7.3 million during the same period last year, and the mortgage-banking unit experienced a loss of $410,000 for the first nine months of 2006, compared with $1.9 million in net earnings during the same period last year.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Black Friday Sale! Bundle our next two events or secure your 2021 All Access Pass.SEE THE DEALS×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription