UK high street bank Barclays has decided to take back its mortgage processing operations from Global Home Loans Limited (GHL), a joint venture it formed with Countrywide Financial Corporation.
Under an agreement forged with GHL, Barclays will bring its mortgage processing operations in-house following the end of the companies’ existing contract, which expires in April 2006. Furthermore, Barclays intends to license GHL’s technology for three years. The companies have also agreed that Countrywide will acquire Barclays’ 30% interest in GHL.
GHL staff working on or supporting mortgage processing for Barclays will remain in their current locations but will become Barclays employees on or before the expiry of the existing contract.
Commenting on the move, Mike Rogers, managing director of UK retail banking for Barclays, said: Further growth of our UK residential mortgage business is a strategic priority for the retail bank. The Woolwich, which is Barclays’ mortgage brand, is powerful and well recognized and we are investing heavily to deliver great product and servicing to customers.
In support of this we have made a strategic decision to take direct control of our mortgage operations from product development through to sales, processing and beyond.