New Mortgage Company Begins Production; Grants Available Through Welcome Home Program
March 06, 2012
CORTLAND – The Cortland Savings and Banking Company ( The “Bank” )is pleased to announce the opening of the CSB Mortgage Company, Inc., as of March 1, 2012. The CSB Mortgage Company, Inc., was created as a subsidiary of the Bank to assist the Bank with income diversification through noninterest revenue. This new wholesale lending division will partner with mortgage brokers in contiguous states to originate mortgage loans. These loans will be sold to investors in the secondary market, generating a profit margin. With historic mortgage rates predicted to remain low, robust activity is expected.
Commenting on CSB Mortgage Company, Bank President and Chief Executive Officer James Gasior noted, “Over the past year, management has been active in evaluating new product/business line opportunities which would both supplement our core business operations and generate new sources of non-interest income”.
“In making the decision to enter the Wholesale Mortgage arena, our management team has taken an important step in meeting a key objective of our corporate Strategic Plan – “Improve financial operating results, through diversification of products and services,” added President Gasior.
As the CSB Mortgage business subsidiary’s commences operations, Bank leadership continues to evaluate additional opportunities to add other products /business lines as the Bank positions itself to diversify and grow both interest and non-interest income and to enhance overall financial performance, concluded Mr. Gasior.
Day to day operations of CSB Mortgage will be run by Senior Vice President Paul Snyderman and Vice President Ladi Stimpfel. Snyderman formerly of First Place Bank brings 25 years of experience and Stimpfel, formerly of Amtrust Bank has been in the industry for 15.
“With more of the larger banks pulling back or out of purchasing one-to-four family residential loans, Cortland Banks saw a unique opportunity to create a subsidiary in order to become competitive in the market,” Snyderman said.
CSB Mortgage will purchase high quality loans in the Midwest region for ultimate sale in the Secondary markets. CSB mortgage will provide products, price and service to its customer base. The customer base can be defined as mortgage brokers, mortgage bankers, small-to-medium sized banks and credit unions. CSB Mortgage will offer competitive pricing and products and will act as an aggregator of single-family residential loans for the retail mortgage lending operations of The Cortland Savings and Banking Company.
Also, March 1, 2012 marks the start of The Welcome Home Program sponsored by Cortland Banks and the Federal Home Loan Bank of Cincinnati. This annual retail program provides down payment and, or closing cost grants to those who meet the predetermined criteria of the Federal Home Loan Bank of Cincinnati. Individuals considering a mortgage can locate a local mortgage lender by calling 330.282.4128 or by visiting www.cortland-banks.com/mortgage. Welcome Home funds are limited and available only until grant funding is exhausted.
An independent Community Bank since 1892, The Cortland Savings and Banking Company, a subsidiary of Cortland Bancorp (OTCBB: CLDB) serves Trumbull, Portage, Ashtabula, Geauga and Mahoning Counties. The Bank offers products and services similar to regional and national banks, while focusing on responsive and personalized service. The Company embraces a culture where customers are known by name rather than account number, and where decisions are made by Senior Executives and Directors who reside and work in the communities where the Company's headquarters and branches operate.
For additional information about Cortland Banks visit http://www.cortland-banks.com.
Welcome Home Program c.2006 Federal Home Loan Bank of Cincinnati, All rights reserved.