Santander Bank decides to end its residential mortgage business in U.S.
Move ‘unlocks capital to fuel our growth,’ it says
As loan rates rise and the landscape become more challenging, Santander Bank, one of the largest banks doing business in New Hampshire, has decided to stop originating residential mortgages and home equity loans in the United States, effective Feb, 11.
The bank, which is based in Spain, announced the decision last week. It said it will continue to service current loans and honor pending borrowers’ applications. It will continue its commercial mortgage business.
The bank said in a statement that it is taking an action that “allows us to focus our efforts and resources on products, services, and digital capabilities that let us better meet evolving consumer needs.”
Santander said it will focus on growing its U.S. auto lending and consumer lending segments but plans to focus on middle-market clients in the U.S. and on corporate clients across its global footprint.
The decision is part of an overall restructuring of the bank’s U.S. consumer business, it said.
“The U.S. is a key market within Santander’s global footprint, and we continue to focus on investing in profitable, at-scale businesses and capabilities. Discontinuing residential mortgage and home equity originations unlocks capital to fuel our growth and help[s] Santander U.S. continue to deliver attractive, sustainable returns,” said in a statement,
According to Inside Mortgage Finance, Santander’s residential loan production totaled $2.7 billion in 2020.