BOISE, Idaho – The Idaho Credit Union League is getting out of the mortgage processing business and selling its brokerage unit to a New Jersey firm, LoriMac Corp. Citing member retention hurdles with its existing operation, the League said the New Jersey-based firm would provide improved marketing efficiencies to member CUs in the state particularly on "transparent" servicing of residential mortgages. "We feel this is the best solution for Idaho credit unions to maintain and hold on to their relationship with members while loans are sold in the secondary marketplace," declared Alan Cameron, president of the Idaho League which effective Oct. 1 is spinning off its two-year-old Mortgage Partners subsidiary. As part of the transaction, the League said its two employees handling Mortgage Partners will join the New Jersey firm, which is a subsidiary of TIS Financial Services, a San Francisco real estate management firm. Mortgage Partners handled processing on first mortgages for 19 Idaho CUs, and in August there were 31 loans on the books, said Jennifer Marts, one of the League loan officers hired by LoriMac. LoriMac officials said the firm, which has 40 CU clients nationwide, expects to broaden its reach in the Idaho market through its Pocatello office as it helps CUs access the secondary market but retain "that individual approach" in marketing. The League said Idaho CUs have long been concerned that while Mortgage Partners provided a beneficial service there was a danger that competitive institutions would be able to access accounts once loans had reached the secondary market. LoriMac, started as a CU CUSO, said it has been in the business 10 years servicing CUs in New York and New Jersey but more recently expanding into the Midwest and now into the Northwest. -

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.