Piedmont Federal Savings and Loan Association: It's Your Mortgage. Keep It Here. campaign
In 2003 Piedmont Federal Savings and Loan Association was composed of 10 branches, making it the third-largest financial institution in North Carolina. Piedmont Federal operated as a "portfolio lender," meaning it lent only its money and kept all mortgages in-house. This time-tested method of financing provided greater security for homebuyers but usually resulted in higher interest rates. In order to unbind their capital, Piedmont Federal's competition usually sold mortgages to third-party institutions. Though the interest rates were cheaper, the competition's customers were usually unaware of who actually carried their mortgages. Between 2000 and 2002, 29 percent of Piedmont Federal's customers left for banks, credit unions, and mortgage brokers offering lower interest rates. To restore Piedmont Federal's customer base and accentuate its safer method of financing, the bank released a campaign titled "It's Your Mortgage. Keep It Here."