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Bank of the Ozarks dropping secondary market home lending business

Bank of the Ozarks will no longer originate home loans for resale on the secondary market, due to a lack of profitability, Arkansas Business reported Dec. 19.

A spokesperson reportedly told the publication the business line has "operated at essentially break-even," and said regulatory requirements following the 2008 financial crisis made originating the loans "challenging from a profitability perspective."

According to the report, the Little Rock, Ark.-based company plans to continue originating some home loans through its Community Reinvestment Act mortgage lending group and its community bank group. The bank doesn't plan to close any offices, but some personnel will be displaced. The company's website lists 39 licensed mortgage originators across five states. E.M. "Gene" Holman Jr., president of the mortgage division, will reportedly stay on with the bank.