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Who is B of I Federal Bank?

Adam Rust's picture

Posted May 13, 2013

While initial disclosures linked a California bank to the Jackson Hewitt Smart Line of Credit, the most recent information about one of this year's tax time loans connects it to B of I Federal Bank.

Yet more review suggests that Jackson Hewitt may have published inaccurate information on its disclosure. B of I says that it does not have a relationship with the Smart Line.

BofI Federal Bank, a holding company for the Bank of the Internet, is a thrift from San

Diego with approximately $2.4 billion in assets.

Some of the bank's activities square up with a traditional bank focused on commercial real estate and business lending. The company makes loans on multi-family properties. In fact, the company has a subsidiary, known as Apartment Bank, just for that purpose. Among their segments:

  • Reverse Mortgages
  • Mobile Home Parks
  • Multi-unit student housing developments
  • Mixed-use properties
  • Several types of capital for health-care businesses, such as long-term acute care residential facilities, hospices, or pharmaceutical labs.
  • Savings and checking accounts that offer airline miles.

The company buys structured settlements, which generally involve trading the rights to a future life insurance payment for a series of payments or a lump sum during the lifetime of the borrower.

When I asked a direct banker in the loan division at B of I about the Smart Line, he said "That is an unusual product. We have a lot of unusual products."

But when pressed further, it seems that B of I is insisting that Jackson Hewitt has published the wrong information about the loan.