Another Warehouse Lender Quits

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Another Warehouse Lender Quits

Jul 13, 2023 | News | 0 comments

Sources have confirmed that Fifth Third Bank has decided to exit the warehouse lending sector, approximately nine months after entering the market. This decision comes following a comprehensive evaluation and assessment of the business.

A representative from the bank has verified the information; however, specific details were not provided. The spokesperson mentioned that there are only a small number of clients and that the warehouse lending department employs approximately 12 individuals.

Fifth Third Bank initiated the development of its warehouse lending division in 2021, a period during which mortgage originations were experiencing considerable growth and 3% interest rates were prevalent. To oversee this new venture, the bank recruited Donnie Martin, an experienced professional in the warehouse lending field.

Fifth Third Bank’s recent exit from nonbank financing signifies another departure from the warehouse lending industry in a short span of time. This decision comes shortly after Comerica also withdrew from the warehouse lending business in mid-June.

As the principal subsidiary of Fifth Third Bancorp, Fifth Third Bank holds a prominent position as a large consumer bank in the Midwestern United States. The bank’s headquarters are located in Cincinnati, Ohio, where it operates and serves customers throughout the region.

With a comprehensive network of 1,087 full-service locations, Fifth Third Bank provides banking services to businesses and communities across 11 states. Its client base includes retail, small business, corporate, and investment clients. The bank operates a significant number of branches, totaling 1,100, and has a wide coverage of 50,000 automated teller machines (ATMs) distributed across Ohio, Florida, Georgia, Illinois, Indiana, and Kentucky. These states include Michigan, North Carolina, South Carolina, Tennessee, and West Virginia.

The moniker “Fifth Third” originates from the amalgamation of two precursor banks, Third National Bank and Fifth National Bank, which merged in 1909. This merger resulted in the birth of Fifth Third Bank and the subsequent adoption of its distinctive name.