Willamette Valley is the latest bank to step away from residential mortgages
Salem,
Oregon-based
Willamette
Valley
Bank
is
exiting
the
residential
mortgage
lending
business,
citing
intense
competition
and
a
prolonged
high
interest
rate
environment.
The
bank
announced
Thursday
that
its
mortgage
operations
will
cease
on
March
31.
President
and
CEO
Ryan
Dempster
said
the
residential
mortgage
industry
has
undergone
significant
changes
in
recent
years,
including
the
rise
of
online
and
nonbank
lenders
and
an
extended
period
of
elevated
interest
rates.
“These
conditions
have
made
it
increasingly
difficult
for
community
financial
institutions
to
compete
sustainably
in
this
segment,”
Dempster
said
in
a
statement.
“We
remain
focused
on
commercial
banking
and
continue
serving
the
core
needs
of
businesses
and
individuals
throughout
the
Willamette
Valley.”
Willamette
originated
approximately
$233
million
in
mortgages
over
the
past
12
months,
down
sharply
from
$460
million
in
2023,
according
to
mortgage
technology
platform
RETR.
The
bulk
of
its
production
consisted
of
conventional
and
purchase
loans.
Data
from
the
Nationwide
Multistate
Licensing
System
(NMLS)
shows
the
bank
had
13
sponsored
loan
officers
as
of
Thursday.
RETR
data
indicates
that
39
loan
officers
departed
the
company
over
the
past
year.
The
move
comes
amid
a
broader
pullback
by
banks
from
mortgage
originations.
In
October
2025,
Puerto
Rico-based
Popular
Bank
exited
the
business
as
part
of
a
profitability
strategy
that
included
the
closure
of
four
underperforming
branches
in
the
New
York
metro
area,
according
to
chief
financial
officer
Jorge
Garcia.
A
month
before
that,
OceanFirst
Bank
also
stepped
away
from
mortgage
originations,
opting
instead
to
partner
with
Embrace
Home
Loans
to
continue
offering
financing
solutions
to
customers.
Jill
Hewitt,
senior
vice
president
and
director
of
corporate
communications
and
marketing
at
OceanFirst,
said
the
mortgage
segment
has
been
“dominated
in
recent
years
by
large-scale
wholesale
mortgage
companies
and
financial
technology
firms,”
prompting
many
banks
to
reassess
their
business
models.
Embrace
has
also
entered
into
a
partnership
with
New
York-based
Amalgamated
Bank.
Meanwhile,
Philadelphia-based
Firstrust
Bank
has
partnered
with
MortgageCountry
LLC.
Under
the
arrangement,
loans
will
be
originated
and
closed
under
Firstrust’s
name,
and
the
bank
will
retain
its
loan
officers
as
employees.
MortgageCountry
will
oversee
production
along
with
providing
leadership
support
and
a
technology
platform.
