CFBank Exits Direct Consumer Mortgage Business



CFBank, a banking subsidiary of CF Bankshares Inc., is ending its direct-to-consumer (DTC) mortgage business and is focusing on retail lending instead.

The company says it has suspended issuing new rate lock commitments through its DTC mortgage lending business, effective June 30, and will work to close its existing portfolio of loans and commitments in the next few months.

CFBank’s decision to wind down its DTC mortgage business was the result of changing market conditions during 2021 as the home mortgage market experienced price volatility, reduced refinancing volumes, squeezed margins and increased market competition, among other factors that resulted in a challenging environment. – said in the message of the company. Market conditions have resulted in CFBank incurring increased early repayment commission (EPO) costs in 2021 as the number of borrowers repaying loans within the first six months of disbursement has increased significantly.

In addition, the decline in DTC mortgage origination and related revenues in the second quarter, combined with increased EPO spending, is expected to result in post-tax losses for the DTC mortgage business.

“CFBank unexpectedly entered the DTC mortgage lending business in 2018 and we capitalized on this timely business decision,” explains Timothy T. O’Dell, President and CEO. “DTC’s mortgage lending business has been a significant source of fee and commission income for CFBank over the past two years, and the fee and commission income generated from this business has allowed CFBank to invest in expanding its presence and presence along with increasing capital.”

CFBank says it will work to grow and expand its commercial and retail banking business, along with retail mortgage lending.


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