FB Financial in Nashville, Tenn. is shutting down its direct-to-consumer mortgage business.
The $12.7 billion-asset company said in a regulatory filing Tuesday that it would close Real Genius, its national mortgage internet delivery channel, as part of a broader restructuring. The company plans to complete the process by the end of this year.
FB Financial said it decided to exit the business because of recent margin compression, reduced volumes, a shortage of housing inventory is its markets and “refinance fatigue.” The company plans to redirect resources to its traditional consumer mortgage retail channel.
The direct-to-consumer channel accounted for 50.7% of the company’s sales volume in the first quarter, a decrease from 52.8% a year earlier.
FB Financial said it expects to incur $11 million to $13 million in pretax charges this year tied to the restructuring. The charges cover personnel costs, contractual terminations and writedowns of premises and equipment.