Republic Bancorp, Louisville, Ky., plans to enter the warehouse lending arena by the second quarter and recently hired a top executive from National City Bancorp to manage the business.
"Based on the phone calls we're getting there is still a real need for lenders in this business," said Republic president and CEO Steve Trager. "We are committed to warehouse."
Trager also promised that the bank will provide lines of credit to nonbank mortgage firms that are located outside its "bank footprint" of Kentucky, Indiana, Ohio, and Florida.
The executive heading the new effort for Republic is Kevin Rost, who left the warehouse lending division of National City shortly after NC's owner, PNC Bank, said it would exit the space.
Rost told National Mortgage News that Republic is currently building a warehouse team in anticipation of the new business launch. His official title at Republic is vice president/division manager of warehouse lending.
Trager said he and the bank are quite familiar with the mortgage business, adding that Republic is one of the top ranked residential loan originators in both Kentucky and the Midwest.
