Guaranty Bank Shutters Mortgage Subsidiary

Posted by Orb Staff on May 05, 2009 No Comments
Categories : Residential Mortgage

ranty Bank of Brown Deer, Wis., has announced that it will close its GB Mortgage subsidiary.[/b] The Milwaukee Journal-Sentinel reports that GB Mortgage was created in 2007 following the merger of the bank's two wholesale lending subsidiaries, Guaranty Mortgage and Shelter Mortgage. The bank's parent company, Guaranty Financial Corp., posted a loss of $24.1 million in the fiscal year ending Sept. 30, 2008, and a $8.5 million loss for the first quarter of 2009. Guaranty Bank has seen 11 consecutive quarterly losses, and in March the Office of Thrift Supervision issued a cease-and-desist order that demanded the bank improve its capital ratios while reducing delinquent loan levels and ensuring adequate reserves were in place to handle bad debt. SOURCE: Milwaukee Journal-Sen

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