KeyBank, in the process of purchasing First
Niagara Financial Group announced in December
it plans to keep mortgage operations in Buffalo
where First Niagara Bank is based.
KeyBank, a wholly owned subsidiary of KeyCorp, with various offices in Saratoga County,
said it will leverage and expand First Niagara
Bank’s mortgage capabilities as it completes
First Niagara’s merger into Key.
Officials said that although it is too soon to
know exactly how many jobs the Buffalo mortgage
operations will entail, it is anticipated that
initially approximately 300 employees will be
needed to ensure all functions are covered.
KeyCorp and First Niagara Financial Group
announced on Oct. 30, 2015, an agreement for
Key to purchase the Buffalo-based bank, subject
to shareholder and regulatory approvals. Key
recently announced a plan to bring its currently
outsourced mortgage fulfillment operations into
the organization. The scope of the project will
now leverage First Niagara’s servicing platform
systems and expertise after the merger occurs.
Currently, mortgage origination — application
and product determination — is handled
by KeyBank Mortgage loan officers located
throughout KeyBank's 12-state footprint, as well
as through a centralized telemortgage team,
while underwriting, fulfillment and portfolio
management functions are managed and serviced
by an outsourced provider, PHH Mortgage,
the company said.
KeyBank officials said the company plans to
build underwriting, fulfillment and portfolio
management platforms to support mortgage
loan origination. Additionally, in connection
with the merger, KeyBank will bring residential
loan servicing in-house through First Niagara
Bank's existing residential loan servicing unit.
Key plans to utilize First Niagara Bank's New
Haven, Conn.-based mortgage fulfillment group
as well.
KeyBank's target date for a pilot on new platforms
is June, with a full launch sometime in the
fourth quarter 2016.
"Buying a home is typically one of the biggest
investments most people make," said Beth
Mooney, chairman, president and CEO, KeyCorp.
"Key's ability to own the client experience and
the mortgage origination process will benefit
clients as well as strengthen our ability to expand
client relationships. When clients have all of their
products or services with us, we can better know
and serve them. This is relationship banking."
First Niagara does not outsource any component
of its residential mortgage origination
or servicing.
Decisions on organization structure and
leadership appointments will be made a later
date, officials said.
"We are excited to make this first announcement
as we plan to leverage each organization's
existing capabilities after the merger," said Chris
Gorman, president, Key Corporate Bank, who
leads the merger integration team, comprising
both KeyCorp and First Niagara team members.
"As KeyBank looks to combine companies, retaining
the knowledge and experience of those
employees within First Niagara's operations is
critical, and expanding our footprint will provide
job opportunities in both fulfillment and
servicing to support the additional transactional
volume."
KeyCorp was organized more than 180 years
ago and is headquartered in Cleveland, Ohio. Key
had assets of approximately $95.4 billion at Sept.
30. Key provides deposit, lending, cash management
and investment services to individuals
and small and mid-sized businesses in 12 states
under the name KeyBank National Association.
First Niagara, through its wholly owned subsidiary,
First Niagara Bank, N.A., is a multi-state
community-oriented bank with approximately
390 branches, $39 billion in assets, $29 billion
in deposits, and approximately 5,400 employees
providing financial services to individuals, families
and businesses across New York, Pennsylvania,
Connecticut and Massachusetts.