Atlantic Bank and Trust is the second community bank to sign up as a client of Kislak Lending Solutions, the private label lending operation established when J.I. Kislak Mortgage revived its business this past summer.
The Charleston, S.C.-based bank said it is expanding its residential mortgage activities due to increased customer interest, but did not want to invest the hard dollars to develop its back office. Besides Charleston, it also has branches in Myrtle Beach, S.C. and Savannah, Ga.
Under the arrangement, employees of Atlantic Bank & Trust will originate the loan, and then its underwriters will work with KLS for such functions as approval and closing.
Tom Meyer, chief executive of KLS/J.I. Kislak Mortgage, said the outsourcer was created because "for community banks, maintaining a mortgage business has become increasingly difficult with more stringent government regulations and documentation requirements." But these institutions are seeing more demand for mortgages from their customers than ever before, he continued.
Kislak's other client is First Bexley Bank, Columbus, Ohio.
Besides community banks, KLS will also target builder-owned mortgage companies as clients, Meyer said in an interview this past summer.
