Banco Popular, the largest lender of ITIN loans has announced Tuesday they will no longer be making mortgage loans in the United States. As part of a restructuring effort, the Puerto Rican based bank is closing wholesale lending operations in January 2007.
I called my friend who owns a mortgage company that caters primarily to hispanic customers and asked his impression and it was news to him. He hasn't heard anything directly from Banco even though the announcement was made on Tuesday.
Brokers catering to the hispanic client will find this a blow to their mortgage lending program selection. Currently, Citibank through its retail lending channel is the largest source of financing ITIN lending available once Banco departs the market place.
Ken Stampe
**UPDATE** - 1/12/2007 - it appears I overreached in my assumption that there was only one Banco Popular wholesale lending division as the on that is closing never had operations in Texas.
"I just heard from Carlos Sanchez, the owner and president of Maxima Financial, a mortgage brokerage firm in Dallas, TX who specializes in ITIN lending. Mr. Sanchez' email is included below:
"OK here is the scoop....
Banco Popular ITIN program actually represents a significant percentage of BPPR profits and not only they are not closing but they are rolling out more aggressive program I February.
BP does not have Sub-Prime wholesale program (non-ITIN) here in Texas but it does in other states, it is these operations they are closing. The division head is retiring and about 600 out of 2500 employees in the division are being offered severance packages.
From my experience with BP in PR, they will be either offer alternate jobs or a nice severance package.
Anyways, ITIN program is alive and growing.
Regards and thanks for the heads up!"
Carlos J Sanchez
President
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