Twin Cities bank enters mortgage biz

Northwestern Financial Review, Dec 1-Dec 14, 2005

Through a partnership with ABN AMRO, Highland Bank, St. Paul, Minn., has entered the residential mortgage business. The Twin Cities bank now offers its customers access to ABN AMRO's guaranteed OneFee mortgage product, which lumps all closing costs, such as loan origination fee, discount points, appraisal fee, title insurance, and tax registration fee, into one flat-rate charge. The fee charged corresponds to a mortgage rate that can be long-term, shortterm, fixed or adjustable; lower rates typically come with a higher fee while higher rates carry a lower fee.

"The OneFee product is really cool because it covers everything," said Jan Prochaska, Highland Bank director of branch banking. "Borrowers won't get nickeled-and-dimed to death."

"There has been a lot of demand from our current and prospective customers for us to originate first mortgages for purchases and/or refinancing," said Highland Bank President and COO Pat Bradley.

The product enables the Highland Bank to keep costs low and rates competitive, added Chad Curran, mortgage consultant and branch manager of the bank's St. Paul office. All mortgage applications are funneled through Curran, although the bank expects to have originators at almost every one of its branches as its mortgage business grows. The bank also expects to work directly with its clients on mortgage applications and follow-up, including determining the loan and fee structure. Afterward, ABN AMRO's Mortgage Group will finish processing applications and will underwrite the mortgages.