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Idaho League Selling Mortgage Broker Unit

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...

By Jim Rubenstein | Updated on September 23, 2003

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. -

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