The Bank Slate


Sterling in Mich. says mortgage partner is shutting down

Sterling Bancorp in Southfield, Mich., is dealing with a mortgage partner’s decision to shut down.

The $2.5 billion-asset Sterling said in a press release that a recent decision by Promontory MortgagePath to end operations will impact the banking company’s current mortgage program.

Sterling earlier this year began to outsource its mortgage loan production services to Promontory MortgagePath in a deal that let the bank continue to actively participate in residential lending without a full-time staff.

Sterling cut 35 jobs as a result of the outsourcing arrangement. The positions had total annual salary and compensation costs of $3.7 million.

Promontory MortgagePath and Sterling will continue to accept loan applications through Nov. 30. Sterling said it will “diligently assist” customers with mortgage loans during a transition period.

“We enjoyed our partnership but understand PMP’s challenges and the current economic impact on the entire mortgage industry,” Thomas O’Brien, Sterling’s chairman, president and CEO, said in the release. “Sterling is committed to our customers and will continue to work closely with PMP throughout this transition.”

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