Report: Union Federal Could Be Sold to Out-of-State Buyer

Might a bank with deep Hoosier roots be in the hunt for an out-of-state buyer?

24-Hour News 8 news-gathering partner the Indianapolis Business Journal reports growing speculation that locally-owned Union Federal Bank will be sold to an out of state company.

As the largest locally-owned bank in the state, Union Federal is a sponsor of the Colts. The bank's name is even on the team's training center and their commercials tout the bank as the official bank of the team.

Many analysts fear that an out-of-state institution would be less community-driven.

"A lot of local companies are more inclined to support local institutions or local sports teams and we have the same issue going right now with Marsh, where Marsh is looking for a buyer and Marsh is a big sponsor of a lot of organizations. It remains to be seen whether an out of state buyer will have that same local investment that a local company has,” said Greg Andrews, IBJ.

IBJ has spoken to analysts who believe Union Federal and its parent company, Waterfield Mortgage Company, will be sold separately.

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.