Temple-Inland selling part of Guaranty, slicing 250 jobs

Temple-Inland Inc., owner of Guaranty Bank, is cutting 250 jobs as a result of its decision to sell off part of Guaranty's mortgage unit.

Guaranty Bank is selling its wholesale origination network and focusing on consumer direct mortgage services. Wholesale origination is a process in which loans are bought from mortgage brokers, bankers or other loan originators.

The bank will handle consumer mortgage lending out of its banking centers and correspondent networks.

Temple-Inland says the repositioning will reduce costs and "exposure" to the fluctuating market. The move is expected to be complete by the end of the year.

In the third quarter of 2005, Temple-Inland reported net income of $38 million, or 33 cents per share, compared with a net income of $40 million, or 40 cents per share, for the same time last year.

This isn't the first time Guaranty has restructured its mortgage lending unit. In the fourth quarter of last year, the mortgage banking operations were restructured, resulting in the sale of the third-party mortgage servicing portfolio. That step led to the sale or closure of more than 100 retail branch locations and the loss of 1,500 jobs.

Austin-based Temple-Inland (NYSE: TIN) offers financial services, makes corrugated packaging and produces lumber.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.