Syracuse Securities to shut down, hand off loans to Premium Mortgage
Syracuse Securities Inc., a family-run lender and servicer in New York, is planning to wind down and transfer its outstanding pipeline to Premium Mortgage Corp.
Loan officers and some other members of Syracuse Securities' staff will become employees of Premium and continue to operate out of the former company's East Syracuse, Skaneateles and Cazenovia offices. Premium will close its Liverpool office and transfer existing personnel to East Syracuse.
The terms of the transaction were not disclosed.
"We are pleased that Premium Mortgage is interested in expanding their operations further into the Syracuse market via the merging of their mortgage professionals with ours," Larry Smith, Syracuse Securities president, said in a press release.
"I am honored the Smiths would provide me this opportunity to expand our Syracuse presence. The changeover should be quite seamless as we both operate a very similar model," Mike Donoghue, president of Premium Mortgage, said in the release.
Premium Mortgage has been originating at a rate of more than $800 million annually, and Syracuse Securities closed $4 billion of mortgages over time, according to the release. The latter company currently services more than $800 million in loans.
Syracuse Securities called the decision to wind down "difficult" and noted that it comes "after what can only be regarded as a phenomenal run in an unforgiving and highly competitive business."
The late E. Carlyle Smith incorporated Syracuse Securities as an offshoot of Longley Jones Real Estate in 1963, and his family remained involved in the business thereafter. Syracuse Securities became a separate mortgage company in 1975.
The mortgage company initially operated an origination and servicing business for several New York State banks. It later obtained approvals to originate government-insured loans and act as a seller-servicer for the government-sponsored enterprises.
"Syracuse Securities was a pioneer in mortgage banking, being an early recipient of a New York State mortgage banking license, and became the template for the structure of many modern-day mortgage banking operations," according to the two companies' press release.