Old Point National Bank recently announced a strategic alliance to transition the processing of mortgage loans to Tidewater Home Funding based in Chesapeake.
Old Point said it will maintain the branding of its mortgage division as Old Point Mortgage and will continue to underwrite and service select mortgage products through its retail and private banking arms.
“This strategic alliance between Old Point and Tidewater Home Funding will expand opportunities for both organizations, continue to provide our customers with excellent service and local decision-making, and maximize value to our shareholders,” Joseph Witt, Old Point financial services president and chief strategy officer, said in the announcement.
The decision is related to both rising interest rates, which has led to a drastic reduction in mortgage sales across the nation, and expense control, Old Point spokesperson Laura Wright said. The alliance allows Old Point to continue to offer mortgage services and expand its mortgage loan product offerings while focusing on its core banking services.
The Mortgage Bankers Association reported higher borrowing costs led to a drop in demand for mortgage applications, including refinances. The average 30-year fixed mortgage rate doubled from above 3% to above 6% in 2022. The rate reached 7.79% in October and dipped to 6.9% as of Feb. 22, according to mortgage buyer Freddie Mac’s weekly surveys.
Old Point Mortgage’s three offices will be consolidated into one and relocated to the company’s headquarters in downtown Hampton, Wright said. Sherry Thacker, Old Point executive vice president and mortgage director, will continue to lead Old Point’s mortgage loan production efforts.
Positions at Tidewater Home Funding were offered to all five of Old Point’s mortgage loan originators, Wright said.
“We look forward to partnering with Old Point and expanding Tidewater Home Funding’s efforts to increase home ownership across our region,” said Kim S. Curtis, president and CEO of Tidewater Home Funding LLC.
