The move was made following the firm's decision to limit its national footprint and focus on the Florida market. Amerant noted it is "executing on a plan to reduce the size and scope of our mortgage business, transitioning from being a national mortgage originator to focusing on in-footprint mortgage lending to support Amerant's retail and private banking customer base," in its first quarter earnings.

Prior to the restructuring, Amerant had 78 mortgage-related personnel, which were "progressively reduced" to a mere 20 employees. Its blueprint to downsize shows it will pull out of offering mortgage services in 30 states. The firm expects the restructuring to result in lower vendor-related operating costs and personnel costs, amounting to a drop in non-interest expenses of approximately $2.5 million per quarter starting in the third quarter of this year, it said.

Amerant originated a total of $418.4 million in single-family residential and construction loans, amounting to $6.9 million in mortgage-banking income. 

The bank did not immediately respond to a request for comment Tuesday.

Other banks have also moved to shrink their footprint in mortgage lending in recent years, spurred on by volatility in the market. WaFd Inc., the parent company of Washington Federal Bank, announced in January it is exiting mortgage lending, citing impacts from the business' commoditization and technology, as well as the regulatory burden, in its decision.

For the period that ended Dec. 31, 2024, WaFd originated $156.1 million of residential mortgages. This compared with $138.2 million for the fourth fiscal quarter of 2024; for the full fiscal year, which ended on Sept. 30, 2024, it was $430.3 million.

Ally Financial also announced its decision to get out of residential mortgage lending in January.

But the steady trickle of banks exiting mortgage lending following the Great Recession may come to a halt, as the Trump administration has expressed interest in loosening regulations that govern originations and land use. 

In recent weeks, heads of JPMorgan Chase, Wells Fargo and Bank of America made statements calling for more favorable regulations pertaining to loan origination, servicing and securitization. All have argued that doing so will lower the cost for borrowers to own a home.