WASHINGTON, May 1 -- The American Bankers Association issued the following news release:
ABA Community Bank Mortgage LLC paid $967,362 in 2013 to participating bank-owners who sold loans to LLC affiliates. The average payout to active owners was $34,592.
"Ownership in the LLC gives us access to better pricing, thanks to the program's leverage," said Dennick Skeels, chief operating officer, Union First Market Bank, Richmond, Va. "As an owner bank we have recouped our initial investment many times over from the bonus payments we have received through the program. The flexibility offered by the program not only enables us to execute without pressure to meet volume quotas, but it's also a proven way to expand the investor pool. This has been a terrific investment for us."
Presidential Bank in Bethesda, Md. recognized this opportunity as a way to improve its competitive position in the Washington, DC metropolitan marketplace.
"By leveraging the bonus payments from the LLC, our bank is able to enhance consumer loan pricing," said John Schoemer, executive vice president, Presidential Bank. "The bonus payments are used to enhance consumer pricing and access to a broader range of mortgage customers that has made Presidential more competitive and profitable."
Created in 2007, ABA Community Bank Mortgage LLC is a unique and ABA-exclusive mortgage cooperative structure designed to leverage the collective bargaining power of risk-averse community banks that actively sell loans in the secondary market. The association and 71 ABA member banks jointly own the LLC, and those institutions enjoy aggressive loan-sale executions through that ownership.
For more information on how to become an owner, visit aba.com/mortgage or call 1-800-BANKERS.
About ABA Community Bank Mortgage LLC
ABA Community Bank Mortgage LLC offers community bankers options for managing and building their mortgage business. Co-owned by ABA and participating community banks, this cooperative-style venture leverages the power of joint ownership by like-minded community bankers to obtain the most preferred terms possible. All ABA member banks are eligible to become owners of ABA Community Bank Mortgage LLC. For more information, visit aba.com/mortgage.
About Corporation for American Banking
ABA endorsed solutions help banks make money, save money, diversify income and improve efficiency. Backed by our comprehensive due-diligence process, these select solutions are analyzed by industry experts, field-tested by bankers and meet stringent quality and customer-service standards. From compliance and insurance to payments and mortgage lending, you'll find products and services to enhance your bank's bottom line. Learn more at aba.com/endorsed.
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