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Equity One Forms Private Label Agreement With Phoenixville Federal Bank & Trust
By James Comtois
As part of a plan to expand its subprime mortgage loan footprint, as well as improve upon its subprime lending line, Phoenixville (Pa.) Federal Bank & Trust has signed a private label agreement with Equity One, Inc., a Marlton, N.J.-based mortgage lender. This agreement will allow Equity One to make mortgage loans in the name of Phoenixville Federal to the thrift's customers who might have been turned down for a traditional mortgage loan.
Through the Private Label Program, Equity One provides community banks like Phoenixville Federal with a full menu of residential, mixed-use and commercial prime and subprime products. The banks benefit from increased customer loyalty, fee income, additional Community Reinvestment Act credits and a reduction in fixed costs associated with an in-house mortgage operation.
According to George Lee, director of business development, private label, at Popular Financial Holdings, Equity One's parent company, this agreement between the two banks will be mutually beneficial. "We are delighted to begin this partnership with Phoenixville Federal Bank & Trust," he said in a statement, adding, "We believe our private label program will give Phoenixville Federal a value-added service to help retain its customer base in this volatile mortgage market."
David C. Evans, senior vice president of Phoenixville Federal, agrees. "We are extremely impressed by the level and quality of service Equity One provides, and we look forward to a partnership that is beneficial to both of us, but most importantly to our bank customers," he said in a statement.
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