A company that enables mortgage originators to outsource production functions has decided to no longer offer the service for the retail channel. Increased compliance risks impacted the decision.
Titan Lenders Corp. announced on Tuesday that it plans to shutter its general fulfillment service business for retail lenders.
The Denver-based firm began offering the services in 2007 as a way for lenders to improve productivity and increase closing capacity.
But, as Titan Lenders Chief Executive Officer Mary Kladde explained in the statement, handling retail lenders is high-touch while only providing low margins.
“We can no longer operate in retail to our high standards due to the increasing cost to originate and the unforgiving compliance environment,” Kladde said in the statement. “In 2015, this will become even more challenging with the advent of the integrated disclosure rule, which would require Titan to take on additional risk in closing loans.”
The effective exit date is Jan. 31.
The company will instead focus its resources on services targeted at investors and servicers.
Titan Lenders Executive Vice President Ruth Lee said in a written statement that no layoffs are expected from the move.
“The current team will be eligible to apply for opportunities in our other growing divisions,” Lee stated. “We have a lot of talent and want them to grow with us.”
