--- title: "First Federal Bank sells third-party mortgage origination unit" type: "News" locale: "en" url: "https://longbridge.com/en/news/288899861.md" description: "First Federal Bank agreed to sell its third-party origination division and mortgage fulfillment unit to Mortgage Forward, a Chicago-based credit union service organization. The deal aims to enhance Mortgage Forward's national operations and allow First Federal to reposition its home lending strategy under its 2026 plan. Additionally, Netcapital announced a non-binding agreement to acquire most of Resmac's assets for $5 million via stock issuance, seeking to expand revenue streams and potentially pursue an IPO." datetime: "2026-06-05T19:43:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288899861.md) - [en](https://longbridge.com/en/news/288899861.md) - [zh-HK](https://longbridge.com/zh-HK/news/288899861.md) generator: "portal-rs" --- # First Federal Bank sells third-party mortgage origination unit A Florida-based financial institution is selling its third-party origination division and a mortgage fulfillment unit that's part of it to a Chicago-based credit union service organization. First Federal Bank struck a deal to sell the TPO division, which includes the QRL Financial Services unit, to the Chicago-based Mortgage Forward. The buyer will incorporate the new acquisition in its national operation. Terms of the transaction were not disclosed. "This acquisition strengthens Mortgage Forward's commitment to delivering innovative mortgage options for TPO clients," President Chip Adkins said in a press release. The acquisition also will allow the bank to reposition its approach to home lending. "First Federal's 2026 strategic plan emphasizes efficiency and execution, which includes a strong commitment to the retail mortgage market," John Medina, the bank's president and CEO, said in a press statement. The acquisition is currently on track to close in the third fiscal quarter of this year. The privately-held First Federal is a community bank with more than $4.4 billion in assets. Earlier this year, First Federal agreed to acquire NOLA Lending Group to expand its retail mortgage operations. It finalized that sale in March. Great Lakes Credit Union, which owns Mortgage Forward and has apartnership with Vertyx's servicing platform, has more than $1.4 billion in assets. ## Another recent acquisition pact Netcapital also announced an acquisition agreement on Thursday. The company has signed a non-binding letter of intent to buy the bulk of Resmac's assets in a deal valued at $5 million. The deal struck with the assets' owner, RezyFi, would be executed by a new Netcapital subsidiary. "Entering into this LOI reflects our strategy to pursue opportunities that can add new revenue streams while leveraging our existing business, technology infrastructure and capital markets capabilities," Netcapital CEO Todd Violette said in a press release. Violette's company operates a digital private capital markets platform. Resmac is a mortgage bank with nonsupervised direct-endorsement approval for the Department of Housing and Urban Development's Title II loans. It operates in 11 states. Resmac's operations Netcapital would acquire include customer relationships, technology, state licenses, HUD approval and related Federal Housing Administration authorizations, mortgage servicing rights and loans. Under the agreement, Netcapital would pay for the assets by issuing 2.5 million shares of Series A convertible preferred stock issued through its new South Dakota-based subsidiary, SD Holdco. The stock would not be convertible into the parent company's securities. However, if the Resmac business generates at least $10 million in cumulative revenue under generally-accepted accounting principles after closing, then RezyFi might be eligible to receive up to 1 million additional shares of SD HoldCo stock. Netcapital shareholders could receive the company's interest in SD Holdco if a dividend spinout occurs that creates a separate public company down the road. Both Netcapital and RezyFi shareholders would hold equity interests in this company. The deal calls for SD Holdco to make a "reasonable" effort to file a registration statement with the Securities and Exchange Commission that would pave the way for an initial public offering. If it does so and that offering generates at least $10 million in gross proceeds, ReziFI may be eligible to receive as much as 500,000 in additional shares. ### Related Stocks - [RMC.AU](https://longbridge.com/en/quote/RMC.AU.md) - [NCPL.US](https://longbridge.com/en/quote/NCPL.US.md) - [NCPLW.US](https://longbridge.com/en/quote/NCPLW.US.md) ## Related News & Research - [Netcapital Inc. 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