Freddie Mac Approves First Michigan Bank to Sell and Service Mortgages

TROY, Mich., July 15 /PRNewswire/ -- First Michigan Bank announced today that it has regained the approval of The Federal Home Loan Mortgage Corporation (Freddie Mac) to sell and service mortgages in the Port Huron community and throughout Michigan.

The approval had been terminated for the former Citizens First Bank on April 16, 2010. As a result of the termination, thousands of mortgage customers of the former Citizens First Bank had their loans turned over to an out-of-state service center, with phone support routed through an international customer service company.  This was a major disappointment to those 6,500 customers. On April 30, 2010, two weeks after the devastating blow to Citizens First Bank, First Michigan Bank acquired the assets and deposits of Citizens First.  

Within just sixty days of the acquisition, First Michigan Bank demonstrated superior financial strength and quality control which lead to this news. Patrick Ervin, Executive Managing Director of Mortgage Operations for First Michigan Bank said: "We want the community to know we are ready to help them take advantage of today's historically low mortgage rates. The ability for First Michigan to work with FREDDIE once again allows us to offer mortgages and refinances with servicing and support provided by our local team."

David T. Provost, chairman, president and CEO of First Michigan Bank, said: "We are proud to earn the approval of Freddie Mac – and to earn it in such a short period of time. The ability to sell and service mortgages locally is important to the people of our communities and is aligned with our goal of helping reignite the growth in Michigan's economy."

About First Michigan Bancorp

First Michigan Bancorp Inc. is a bank holding company headquartered in Troy, Michigan. Its wholly owned subsidiary, First Michigan Bank, is a locally operated financial institution that provides highly personalized financial services to individuals, professionals and their businesses. With its recent acquisition of Citizens First Bank, First Michigan has 23 locations in southeast Michigan.  Long-term relationships are developed with clients by providing customized banking and investment solutions ideally suited to their evolving financial needs. Please visit our website at www.firstmichiganbank.com for additional information.  

SOURCE First Michigan Bancorp, Inc.