Large Broker Nears Transition to Mortgage Banker

1st Metropolitan Mortgage, Charlotte, N.C., "is on the cusp" of making its change to a mortgage banking operation, said its chief executive Daniel Jacobs. Late last year, the firm said it was looking for "a strategic opportunity" to move from being a mortgage broker to a mortgage banker; since then it has been spending time evaluating various options to make the migration, he said. Now it is on the verge of moving forward so that the company can adapt to the current marketplace conditions so it can grow its volume in a meaningful way as the mortgage industry rebounds from its low point, Mr. Jacobs said. However, he was unable to be specific about what options the company is looking at. In December, 1st Metropolitan closed "a significant number" of its "lowest producing" branches, but its loan volume has remained steady from those that have remained open, he said. Mr. Jacobs said he was excited about the future of 1st Metropolitan as a mortgage banker, especially with the Home Valuation Code of Conduct and other more onerous laws that affect the mortgage broker business coming into effect in the coming months.