New York Mortgage Trust Inc. agreed Wednesday to sell its retail mortgage unit to IndyMac Bancorp for $13.4 million.
The sale includes the active New York Mortgage Trust retail mortgage loan pipeline and 32 retail branches located in 11 states.
New York Mortgage Trust decided to sell the retail portion of the company amid increasingly difficult times in the loan origination environment, and as part of an overall strategy to exit the retail mortgage market.
The mortgage lender is also actively seeking a buyer for its wholesale unit.
New York Mortgage Trust Inc. will now focus on its mortgage-backed bonds business, using the proceeds of the retail sale to boost their inventory.
Shares of New York Mortgage Trust climbed 37 cents to end the day up 12.67 percent on the New York Stock Exchange.
Check out the latest list of closed lenders, mortgage layoffs and mergers.