Alliance Home Funding missed years of profit targets
Thursday, December 28, 2006
Inman News
Alliance Bankshares Corp. says it is
closing its mortgage banking subsidiary, Alliance Home Funding LLC, which
employed 43.
Chantilly, Va.-based Alliance Bankshares
will bring 10 Alliance Home Funding employees into an in-house mortgage banking
division, which will offer home loans in the Washington, D.C., metro area, the
company said.
Closing Alliance Home Funding will
put an after-tax dent in the bank's fourth-quarter earnings of between $350,000
and $450,000, including employee severance pay, systems charges and subleasing
costs.
Alliance Bankshares President and
Chief Executive Officer Thomas A. Young Jr. said the mortgage-lending
subsidiary, created in 2001, has not met profit expectations in recent years.
A series of steps taken this year to
improve results "have not yielded the desired outcome," Young said in
a statement.
With "a continued modest outlook in the housing sector, we felt a radical
change was necessary."
The new
in-house mortgage lending division will have a "focused approach"
that "should lead to better performance metrics," Young said.
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