Luminate Home Loans will close NEO division
Minneapolis mortgage lender Lumines home loans has decided to close its doors NEO Home Loans division, which was transferred to the company two years ago, the company announced on Friday. NEO is expected to close at the end of February 2025.
According to Luminate, the decision reflects, among other things, a “focus on integrating mortgage lending into core banking services to better serve customers and build long-term financial relationships.” The mortgage company, in business since 1998, is a subsidiary of Luminate Bank.
The company said it is working with affected employees and will provide opportunities to transition to other roles within the organization.
Luminate announced in December 2022 that it would transfer the Neo Home Loans team, which had more than 200 members, to its structure. The team was previously part of Celebrity home loans.
“We have made the decision to close the NEO division to align with our long-term business strategy,” Taryn Reuter, CEO and chairman of Luminate, said in a statement. “Our focus now is on ensuring a smooth transition, while continuing to provide excellent service and expanding our platform.”
The lender says it has 84 branches and more than 500 lenders nationwide, offering financial solutions in 49 states.
Within mortgage financing shows that Luminate Bank originated $1.26 billion in mortgages in the first half of 2024, up 4% year over year. Meanwhile, data from the mortgage technology platform Modex shows that the majority of the company’s financing this year consists of conventional (71%) and purchase loans (76%).
“The partnership between Luminate Home Loans and Luminate Bank is the spark that ignites our nationwide expansion and accelerates our growth in the United States,” Reuter added.
