The Federal Savings Bank

What The Federal Savings Bank does

The Federal Savings Bank is a federally chartered, veteran-owned savings bank headquartered in Chicago, Illinois, focused primarily on residential mortgage origination and servicing across all 50 states. Its product portfolio centers on government-backed lending, particularly VA home loans (purchase, cash-out refinance, IRRRL, construction, and personal loans for veterans), supplemented by FHA, USDA, ITIN, conventional fixed-rate and adjustable-rate mortgages, construction and renovation loans (including the Renovation Plus second-lien product), home equity products (HELOC and HELOAN with limits from $50,000 to $500,000), and reverse mortgages (HECM). The bank has been recognized as a Top 20 VA lender for six consecutive years from 2019 to 2024 and positions itself as the largest veteran-owned bank in the U.S.

The bank's technology stack supports a digital-first application experience at apply.thefederalsavingsbank.com, complemented by an in-house processing and underwriting operation and differentiated consumer-facing features such as Express Loan Approval (which enables borrowers to complete most of the loan process before finding a home) and Rate Protect (a lock-and-shop rate protection product). Distribution operates through a hybrid model: 18+ customer support centers across 14+ states, two traditional Illinois retail branches (Chicago and Lake Forest), a nationwide network of mortgage bankers, dedicated phone lending lines segmented by product, and a Spanish-language digital channel. The bank is FDIC-insured, holds NMLS# 411500, and operates as a subsidiary of National Bancorp Holdings, Inc., with the Stephen M. Calk 2025 Trust approved by the Federal Reserve in May 2026 to become its savings and loan holding company.

The revenue model is a hybrid of transactional origination (fees and gain-on-sale on VA, FHA, conventional, and construction loans), recurring net interest income on the held mortgage and home equity portfolio, and recurring servicing fees. Cross-sell into exclusive personal loan products (Smart Loan, Veteran Personal Loan) generates incremental wallet share from existing mortgage customers. The bank operates in a single horizontal segment (residential mortgage lending) with sub-segments across customer personas (veterans, first-time buyers, repeat buyers, ITIN borrowers, rural buyers) and uses a sales-led and direct-to-consumer go-to-market motion with inside sales, retail branches, and field mortgage bankers. The bank has recently come under OCC regulatory scrutiny, including a consent order issued in April 2026 for alleged deceptive practices related to VA cash-out refinance marketing between 2022 and 2024, requiring corrective action, governance reform, and restitution.

Name

The Federal Savings Bank

Legal name

The Federal Savings Bank

Website

https://thefederalsavingsbank.com

Company type

Private

Founded year

2011

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

The Federal Savings Bank is a veteran-owned, federally chartered savings bank headquartered in Chicago that originates and services residential mortgages in all 50 states, with a specialized focus on VA home loans and a Top 20 VA lender ranking for six consecutive years.

Ownership category

akta.pro rank

Product category

Mortgage Lending

NAICS

Savings Institutions and Other Depository Credit Intermediation (522180), Depository Credit Intermediation (5221), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

Savings Institution, Federally Chartered (6035)

akta.pro primary industry

Savings Banks (Public/State-Owned) (FSABAKAK)

Keywords

• Mortgage lending
• VA home loans
• Home equity lending
• Construction financing
• Veteran banking

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices20 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Mortgage Loan Origination: Primary revenue from originating mortgage loans including VA loans, FHA loans, conventional loans, construction loans, and home equity products. Generates income through origination fees and interest rate spreads.
2. Interest Income: Interest earned on the mortgage portfolio including home loans and home equity lines of credit
3. Loan Servicing: Loan servicing operations including payment processing, escrow management, and loan transfer handling
4. Personal Loans: Personal loans (Smart Loan) offered exclusively to existing mortgage customers, generating origination fees and interest income

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

The Federal Savings Bank is a federally chartered, veteran-owned bank that originates and services mortgage loans nationwide across all 50 states. Its core offering centers on VA home loans (purchase, refinance, cash-out, and construction), complemented by FHA, USDA, ITIN, conventional fixed-rate and adjustable-rate mortgages, home equity products (HELOC/HELOAN), reverse mortgages, and construction financing. The bank also offers personal loans (Smart Loan, Veteran Personal Loan) exclusively to its existing mortgage customers.

Product overview

The Federal Savings Bank is a federally chartered, veteran-owned mortgage lender offering a comprehensive suite of home lending products. The core portfolio centers on VA Home Loans (purchase, refinance, construction, and cash-out) positioning the bank as a top-20 VA lender for six consecutive years, complemented by conventional mortgage products including FHA, USDA, ITIN, construction, fixed-rate, and adjustable-rate mortgages. Home equity products include HELOAN, HELOC, and the Renovation Plus second-lien construction loan. Exclusive to mortgage customers, the Smart Loan and Veteran Personal Loan provide personal financing options. The offering spans the full homeownership lifecycle from first purchase through construction, refinancing, and reverse mortgages for seniors.

Differentiator

Problem solved

Functional benefit

Products and services

• VA Home Loans

Quantifiable outcome

• Top 20 VA Lender for 6 consecutive years (2019-2024) per Department of Veterans Affairs Lender Statistics

Named customers7 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Scale indicators4 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• Guild Mortgage: National retail mortgage lender with strong government-backed program volume (FHA/VA/USDA) and comparable geographic and product breadth.
• loanDepot: National retail and direct-to-consumer mortgage lender with comparable purchase and refinance product breadth, in-house processing, and digital application platform.
• Navy Federal Credit Union: Member-owned financial institution serving military and veteran families with mortgage, home equity, and personal loan products — directly comparable in target customer and product mix.
• Rocket Mortgage: Largest US retail mortgage lender, offering VA, FHA, conventional, and refinance products nationwide with a heavily digital GTM — directly comparable to TFSB's product suite and multichannel distribution.
• PenFed Credit Union: Military-affiliated credit union offering VA, conventional, and home equity products to servicemembers and veterans — overlaps significantly with TFSB's primary segment.
• United Wholesale Mortgage: Largest US mortgage lender by volume with broad conventional, FHA, VA, and Jumbo product offerings — a scale competitor in the same core market.
• Veterans United Home Loans: Largest dedicated VA lender in the US, focused on the same veteran and military borrower segment with purchase, refinance, and construction products — the closest direct VA-specialist peer.
• Fairway Independent Mortgage: Large retail mortgage lender with branch-based distribution and broad government-backed product offerings, comparable in nationwide retail-led GTM.

Broad incumbents

• NewRez (Shellpoint Mortgage Servicing): Top-15 US mortgage originator and servicer with broad product offerings including VA loans — comparable in scale and product breadth, with an additional large servicing operation.
• Caliber Home Loans: Large national mortgage lender and servicer offering purchase and refinance products including government-backed loans — comparable in operating model though broader in scope.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/thefedsavbank
• Facebookfacebook.com/thefederalsavingsbank
• LinkedInlinkedin.com/company/the-federal-savings-bank

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles20 records

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Federal Savings Bank