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Banking industry

Webster Financial Corporation Launches Internet-Based Mortgage Lending

Strategic Insights

— 1 min read

Webster Financial Corporation, the holding company for Webster Bank, has expanded its mortgage lending services through the acquisition of Access National Mortgage LLC, a privately held Internet-based mortgage lender. This strategic move enables Webster to offer mortgages over the Internet through its new subsidiary, leveraging Access's expertise in originating low-cost mortgage loans on-line. The combination of Webster's automated decisioning and processing capabilities with Access's proven Internet-based origination expertise creates a dynamic force in mortgage lending, poised to offer quick turnaround times, easier availability, and competitive pricing to customers seeking mortgages.

Key Takeaways:

  • Webster Financial Corporation has acquired Access National Mortgage LLC, a privately held Internet-based mortgage lender, to expand its mortgage lending services.
  • The new subsidiary, Access National Mortgage LLC, will offer mortgages over the Internet, leveraging Access's expertise in originating low-cost mortgage loans on-line.
  • The combination of Webster's automated decisioning and processing capabilities with Access's Internet-based origination expertise will enable the new subsidiary to provide quick turnaround times, easier availability, and competitive pricing.
  • Access will continue to sell all originated mortgages, generating noninterest income.
  • The new subsidiary will provide a platform for Webster to offer other financial services through the rapidly-expanding world of the Internet.
  • Webster's "Instant Approval" process will enhance the convenience and speed provided by Access through the Internet, allowing borrowers to apply for mortgage loans where and when it is most convenient for them.

Statistics:

  • Access closed $350 million in new mortgage loans in 1998.
  • Webster has $9 billion in assets and operates through a network of more than 100 banking offices, three commercial banking centers, two trust offices, and more than 170 ATMs.
  • Webster Bank has the number one or number two deposit market share in its primary markets of Hartford, New Haven, and Litchfield counties.

Sources:

Webster Financial Corporation, press release, January 13 (PRNewswire).

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