(Bloomberg) -- Comerica Inc. said it plans to exit the mortgage banker finance business, a move intended to smooth seasonality in its loan portfolio, enhance liquidity and improve the lender’s loan-to-deposit ratio.
The departure from the warehouse-lending business is expected to be largely complete by the end of the year, Dallas-based Comerica said in a presentation for a Morgan Stanley conference Tuesday morning. The move “allows exit at full value compared to a sale of portfolio,” and will improve the loan-to-deposit ratio by 150 basis points, the company said.
“Comerica’s decision to exit mortgage banker finance underscores the focus on building capital and liquidity,” Bloomberg Intelligence analysts Herman Chan and Sergio Ferreira said in a research note. “These loans to mortgage companies are at a cyclical low of $1.1 billion, while only $400 million in deposits suggests the business was primarily lending-oriented.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
