Paul Davis

The bank said the move will give it more flexibility for raising capital.

The company, which recently completed an audit, set aside funds to cover issues tied with a lending program it discontinued last year. The move cleared the way for Sterling to file an overdue annual report with the Securities and Exchange Commission.

The company said the sale will provide more consistent financial results and allow it to redeploy funds to support other businesses.

Thomas O'Brien will take the helm at Sterling Bancorp, which is dealing with internal control issues and probes by the OCC and Justice Department into its mortgage operations.

The North Carolina company will hold onto the loans after the Fed's decision to slash interest rates.

Howard Bancorp is transferring its mortgage business, along with VAMortgage.com, to a limited liability company formed by former managers in the division

Provident Bank in Amesbury, Mass., has entered warehouse lending after buying a business from People’s United Financial in Bridgeport, Conn.

HomeTrust Bancshares in Asheville, N.C., sold a portfolio of residential mortgages as part of a balance sheet restructuring, with plans to sell more.

The company will hold off on making loans under the Advantage Loan program as it conducts an audit and implements new policies and procedures.

The Dallas company said it should be able to avoid restating past financial results. It also reported higher quarterly earnings helped by increased mortgage activity.