NetBank Shuts B&C Unit; Lime Gets Personnel

NetBank Inc., Atlanta, has pulled the plug on its Meritage Mortgage subprime affiliate, but has agreed to transfer many of the account executives working there to another company.NetBank, which is in the throes of restructuring its entire mortgage business, will also shut a division that finances recreational vehicles, boats, and aircraft. Closing the two businesses will cost the struggling bank as much as $7.5 million. Even though NetBank is exiting subprime, it has found a home for many of Meritage's 80-plus AEs at Lime Financial, Lake Oswego, Ore. (The transaction will cost Lime nothing.) A wholesale funder that works through brokers, Meritage is based in Beaverton, Ore. The company was created by current Lime executives Fred and Mike Baldwin, among others. Meritage was eventually bought by one of NetBank's predecessor companies. Among subprime originators, Meritage ranked 35th in the first quarter, but has not reported funding numbers since then. The companies can be found online at http://www.netbank.com and http://www.limefinancial.com.