Pacific Mercantile Bank, a wholly-owned subsidiary of Pacific Mercantile Bancorp, has decided to exit its consumer mortgage origination business and terminate operations of its mortgage banking division.
Under the plan, the bank considers divesting or terminating significantly all business activities of its consumer mortgage origination unit.
Pacific Mercantile Bancorp and Bank president & CEO Steven Buster said that the firm believes that this change will support its mission of becoming a prominent Southern California business banking franchise.
"We made the strategic decision to exit the consumer mortgage origination business due to the operating performance of the unit and the Bank’s desire to focus on continuing to develop the commercial banking opportunity in its marketplace," Buster added.
The bank management anticipates that its consumer mortgage origination business will stop accepting new applications on or about 20 December 2013, if not sold prior to that date, and terminate all operations on or about 30 April 2014.
Assuring it customers, the lender said that it will honor all contractual commitments for mortgage loans that are in process as of 20 December 2013.