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HW Magazine - Who's Who in Correspondent Mortgage Lending

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HousingWire takes a look at the rejuvenated correspondent lending space.

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Who’s WHO
CORRESPONDENT LENDING virtually vanished in the financial carnage of 2008, all-encompassing big guns like Countrywide and Washington Mutual falling on their subprime swords and contributing to a wipeout of the space. Most everyone in lending stopped extending purchase credit. The nation was thrust into the throes of a foreclosure crisis and the onus was on managing distressed portfolios. Then came nascent, stuttering recovery. Little by little, we’re getting back to something resembling a baseline. Sort of. The refi boom is sputtering along, close to its end. And as the troubled purchase market — bedeviled as it is by new regulatory pressures and compliance imperatives — struggles into gear, lenders have been returning to the correspondent space. Volumes are on the up. According to Mortgage Market Statistical Annual data, 2006’s top producers — a list of 20 correspondent lenders — were churning out nearly $1 trillion in loan volume. By 2008, the equivalent figure had halved, plunging to $474 billion. But in 2010, vital signs of life started to reappear. A smaller field of top producers — 15 in all — combined to produce $606 billion in correspondent loan volume. Looking ahead, as the field opens up into a broader arena of operatives, the count appears to be pointed in a northerly direction once more. Over the last couple of years, new correspondent lending houses have swung open their doors. So here at HousingWire, we’re taking a closer look at what makes a forward-marching correspondent lending provider. How are they fighting their way back? Is it a strong parent company? Is it process? Is it the rise of mini-correspondents? Is new technology playing a key role? For example, the ever-prudent Guardian Mortgage took the leap into the correspondent set for the first time just last year, taking up a posture that errs on the side of caution and, seemingly, long-term client relationship cultivation. Those who consolidated in the wake of the financial difficulties, like the by-all-accounts clever folks at Impac Mortgage, have dipped their feet back in the water. Likewise, in terms of the numbers game, some are shooting for the bigger leagues of funding volumes, while others take a boutique approach, preferring quality over volume. First Guaranty Mortgage Corp., for instance, estimates a funding volume of $4 billion in 2014, targeting the spectrum of lenders, from broker to bulk. Guild Mortgage talks in terms of records. The San Diego-based lender estimates $1 billion for its correspondent arm next year, but wants to firm up a national footprint. CMG Financial, meanwhile, cites $6 billion. We are also seeing a rise within this re-emergence of the niche correspondent lender. The mortgage industry knows the space in question as mini-correspondent lending. In many cases, these operators are one-time brokers bidding to find a new space in the re-aligning marketplace. Some companies are also creating one-stop shops, providing the funds in addition to buying and selling portfolios of home loans. Impac Mortgage is one firm that aligns a warehouse division alongside its correspondent channel in a bid to boost production. Then there are those showcasing the latest in tech advances, those software options aimed at smoothing the lending process. First Guaranty lauds its award-winning tech aids. Still further, some highlight the fact they retain servicing rights over their mortgages. Together, these are the kinds of characteristics setting HW’s list of correspondent lenders apart. And in some cases, it is also down to the fact they have a rather large parent, a source of stability, security and, crucially, liquidity. You could say Prospect Mortgage and the transcendent force of Sterling Capital Partners is one case in point. Of course, not all have such luxury. Regardless, in no particular order, this is our rundown and assessment of 13 top companies.
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FIRST GUARANTY MORTGAGE CORP.

AFFILIATED MORTGAGE CO.
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BOFI FEDERAL BANK

LENDERLIVE NETWORK

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CMG FINANCIAL
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GUARDIAN MORTGAGE CO.

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NEXBANK P.71

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EVERBANK HOME LENDING

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IMPAC MORTGAGE

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⋅ Correspondents ⋅
PICTURE OF A LENDING CHANNEL ON THE UP
THE FIELD OF CORRESPONDENT LENDING is burgeoning, despite the coming regulatory overhaul. Mortgage companies with correspondent channels are springing up across the country, leading to the tentative recovery of a space that had been all but wiped out. This compilation of companies is by no means a complete list of all the correspondent lending providers operating across the nation today, but it represents a large chunk of those institutions with a presence in the field.

1. 2. 3. 4. 5. 6. 7. 8. 9.

AllQuest Home Mortgage; Houston Affiliated Mortgage; Monroe, La. BOK Financial; Tulsa, Okla. Caliber Home Loans; Irving, Texas PHH Mortgage; Mount Laurel, N.J. CitiMortgage; Sioux Falls, S.D. Cole Taylor Bank; Chicago CountryPlace Mortgage; Addison, Texas Fairway Mortgage; Plano, Texas

23. American Financial Resources; Parsippany, N.J. 24. Amerisave; Atlanta 25. BB&T Bank; Winston-Salem, N.C. 26. Chase; Jacksonville, Fla. 27. EverBank; Jacksonville, Fla. 28. Fifth Third Bank; Cincinnati 29. First Guaranty; Tysons Corner, Va. 30. Flagstar Bank; Troy, Mich. 31. Florida Capital Bank; Jacksonville, Fla. 32. Franklin American Mortgage; Franklin, Tenn. 33. Freedom Mortgage; Mount Laurel, N.J. 34. Green Tree; Fort Washington, Pa. 35. Huntington; Columbus, Ohio 36. Independent Bankers Bank; Lake Mary, Fla. 37. M&T Bank; Buffalo, N.Y. 38. New Penn; Plymouth Meeting, Pa. 39. Norcom Mortgage; Avon, Conn. 40. NXT Loan/First American; Brighton, Mass. 41. People’s United; Bridgeport, Conn. 42. Provident Funding; San Bruno, Calif. 43. Quicken Loans; Detroit, Mich. 44. Sovereign Bank; Reading Pa.

45. SunTrust; Atlanta 46. The Money Source; Melville, N.Y. 47. U.S. Bank; Minneapolis 48. BofI Federal; San Diego 49. CMG Financial; San Ramon, Calif. 50. Gateway Bank; Oakland, Calif. 51. Guild Mortgage; San Diego 52. HomeBridge; Irvine, Calif. 53. Impac Mortgage; Irvine, Calif. 54. JMAC Lending; Irvine, Calif. 55. Kinecta Federal CU; Manhattan Beach, Calif. 56. MidAmerica Mortgage; Addison, Texas 57. Pacific Union Financial, Irving, Texas 58. PacTrust Bank; Irvine, Calif. 59. Parkside Lending; San Francisco 60. PennyMac; Moorpark, Calif. 61. Plaza Home Mortgage; San Diego 62. Prospect Mortgage; Sherman Oaks, Calif. 63. Redwood Trust; Mill Valley, Calif. 64. Sierra Pacific Mortgage; Folsom, Calif. 65. Stearns Lending; Santa Ana, Calif. 66. Sun West Mortgage, Cerritos, Calif.

10. Gateway Mortgage Group; Tulsa, Okla. 11. Guardian Mortgage; Plano, Texas

12. Homeward Residential; Coppell, Texas 13. Interbank Mortgage; Lincolnshire, Ill. 14. Mortgage Services III; Bloomington, Ill. 15. Nationstar Mortgage; Lewisville, Texas 16. Nationwide Advantage; Des Moines, Iowa 17. NexBank; Dallas 18. Stonegate Mortgage; Mansfield, Ohio 19. Wells Fargo; San Francisco 20. WestStar Mortgage; Woodbridge, Va. 21. Wintrust Financial; Rosemont, Ill. 22. AgFirst Farm Credit Bank; Columbia, S.C.

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Affiliated Mortgage Co.
Banker spreads correspondent wings in a slowly recovering space
Address: Affiliated Mortgage Co. Correspondent Division 1301 Hudson Lane, Monroe, LA 71201 Phone number: (866) 524-7946 Web: affiliatedcorrespondent.com
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Affiliated Mortgage Co. has been buying up agencyquality home loans from a network of nationwide lenders since 1983 — a correspondent lending house that expects to gobble up $3 billion to $3.5 billion next year. That’s a projection that takes the firm’s correspondent arm from being Affiliated’s icing on the cake, so to speak, to a level whereby it becomes the company’s bread and butter. It’s also a level of buy-up that would seem to put it among the bigger players in the mid-region of the correspondent space. The evidence rests in Affiliated’s 2012 balance sheet, which showed correspondent lending as a large portion of the company’s overall lending. Buttressing this operation since 2007, Dallas area-based Benchmark Bank, itself founded in 1964, is Affiliated’s parent company. Over the course of 2013, the company has gradually spread its correspondent tentacles further into the marketplace. In June, Affiliated rolled out a division whose sights are in part trained on micro-space of the moment: wholesale/mini-correspondent lending. As HousingWire noted, this came at a time when more and more mortgage companies were starting to seep into other areas of a tentatively recovering mortgage space. “The addition of the wholesale/mini correspondent division will provide Affiliated Mortgage Co.’s clients with the entire suite of mortgage services,” Mike Barnett, chairman and CEO of Benchmark Bank, said at the time. In general, the company buys the full complement of loan products on the correspondent side. That includes conventional, FHA, VA and USDA. “We have delegated our in-house underwriting options for our lenders as well as an FHA Partnership Program and the ability to purchase FHA test cases,” Affiliated principals note. The company targets community banks, credit unions and smaller mortgage banking companies. “Lenders who are looking for a true correspondent partner,” the company says. What sets the firm apart, says Vice Chair Meredith Dorris, are what she calls unparalleled personal services, which includes a lender-dedicated account executive and in-house client relations representative. “Our lenders have access to all our personnel, from the president to the underwriter to the funder,” she explains. “Our loan underwriting

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Meredith Dorris is the vice-chair of Affiliated Mortgage. Dorris has more than 25 years experience in secondary markets and joined Affiliated’s parent, Benchmark Bank, in 1996. Her responsibilities include product development, hedge company oversight and IT interface. In the realm of the company’s correspondent business, she manages secondary staff for the correspondent, retail and wholesale division of Affiliated Mortgage. Jason Beene is the company president. He began his career at Benchmark Bank in credit analysis

“The addition of the wholesale/mini correspondent division will provide Affiliated Mortgage Co.’s clients with the entire suite of mortgage services.” — Mike Barnett, chairman and CEO of Benchmark Bank
and, later, business development and account management. In 2008 Beene shifted to Affiliated, where he began overseeing credit risk. He was named national sales manager in 2009, gaining promotion to president in January 2013. In this role, Beene oversees all aspects of the company’s day-to-day business. Kevin Payne is Affiliated Mortgage’s senior vice president and chief operating officer. Having accumulated more than 28 years of experience in the mortgage and finance industry, he joined Affiliated earlier this year. Payne manages all aspects of the company’s daily in-house operations as well as having daily involvement with sales, investor relations, client relations and retail fulfillment.
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and purchase turn times are consistently among the best in the business.” The company believes it has an experienced team backing up this service output that can consistently deliver on stated standards. “The communication, knowledge and experience of our staff. Most of the team at Affiliated Mortgage have worked together in the mortgage industry for over 15 years and have successfully navigated the changes in the business throughout the years,” the company says. “We are well versed in all aspects of the business and pride ourselves on constant communication with our lenders.”

Guardian Mortgage Co.
Striving for growth within a conservative approach
Address: Guardian Mortgage Co. Correspondent Lending 2701 N. Dallas Parkway, Suite 280, Plano, TX 75093 Phone number: (972) 248-4663 Web: guardianmortgageonline.com
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“During the subprime years, Guardian often heard we were missing the boat. There was easy money to be made in throwing out the qualifying rules. All along, we opposed doing so.” — Guardian principals

If ever there was a company well placed to encapsulate just how prophetic predictions have been over the rebirth of correspondent lending, then Guardian Mortgage is it. Prudent and shrewd is how the company essentially views itself. Until launching its correspondent lending division in 2012, the 48-year-old mortgage lender had been completely focused on retail. “During the subprime years, Guardian often heard we were missing the boat. There was easy money to be made in throwing out the qualifying rules. All along, we opposed doing so. In the long run it would be bad for the customers and therefore bad for the company,” said company principals who sit atop a $2.5 billion servicing portfolio. “The company’s rapid growth in recent years is the result of making the hard, right choices when they were not the popular choices. Since 1965, we have grown by referral and those referrals are made due to the level of expertise and focus on enhancing the client experience.” And the Richardson, Texas-based outfit is pretty clear on one point: “We retain 100% of our servicing by Guardian employees in Richardson — not a subservicer,” says company CEO Marcia Phillips. Deeper still, there is meaning intended here from the boutique correspondent lending provider. “Guardian is a pure mortgage banker that doesn’t compete with our client’s customers for other accounts or cross-sell any other products,” Phillips adds. Which is an important thing to point out if you possibly can as a correspondent player that deals with primarily community banks, credit unions and small- to medium-sized bankers. Guardian, of course, resides on the smaller side of the business. The company projects $250 million in correspondent business for next year. But the company accentuates its boutique nature, after all. It plays in Texas, Oklahoma, Arkansas and Colorado. Plans are in place to expand out of that footprint, but the company insists this particular region bears opportunity “with great volume and great quality.” But the company is also mindful of the precariousness in the market that its correspondent clients will be forced to face. In a recent interview, Executive Vice President and Chief Administrative Officer Cari McCue quantified this reality in terms of two major challenges. “One, transition to a market with less refi opportunities as a result of rising rates,” she said. “They will need an aggressive approach and strategy to

gain a share of purchase business. And two, our clients will need to stay ahead of all of the CFPB rules and regulations with regard to compliance and quality.” The Guardian correspondent team includes CEO Phillips, of course, and other leaders including McCue and Executive Vice President and Chief Business Development Officer Marcus McCue. Speaking at the launch of Guardian’s correspondent side, Vice President of Business Development Joe Collins pointed toward uniqueness in the company toolkit. There was a level of care not shared by many others in the space, he said. That appears to be a commitment they are sticking to more than one year further down the road.

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Marcia Phillips has devoted virtually all of her professional life to helping build Guardian. She acts as CEO of the independently owned and managed company — a role she assumed in 1988. She is also a longtime company director.  Phillips has guided the growth of Guardian from servicing loans of $575 million in volume when she became CEO to nearly $2 billion today. She joined Guardian in 1976 to oversee the process of adapting the company to its first computer system to help manage loan servicing and has also worked in cash management. Guardian was established as a Michigan lender in 1965 and in 1983 moved most of its corporate functions to Texas, which is when she relocated to the state. Marcus McCue has propelled the company to nine-fold growth in retail loan origination since 2008. He began his career as an individual mortgage originator at Guardian, becoming leading producer. He attributes the company’s rapid growth to its dedication to customer service. Prior to joining Guardian, McCue served as vice president of commercial banking for a Dallas bank. Cari McCue has been in mortgage banking for more than 17 years, playing a pivotal role in growing Guardian. She manages both the retail and correspondent pipelines along with hedging and securitizing the secondary market. She founded the correspondent division in 2012. “This multistate program has already proven successful, with unprecedented turn times, efficient approval processes and outstanding customer service,” she says.

BOK Financial
Blending big-money muscle with boutique principles
BOK Financial Correspondent Mortgage Services Address: BOK Financial Mortgage, 7060 S Yale Ave., Tulsa, OK 74136 Phone number: (855) 890-1485 Web: bokfinancial.com/cms
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Operating under the umbrella of a regional heavyweight in commercial and consumer banking, BOK Financial Correspondent Mortgage Services is part of Tulsa, Okla.-based BOK Financial’s regional — but expanding — empire. For instance, it shares the space with common retail names such as Bank of Arizona, Bank of Oklahoma and Bank of Texas. Other BOK Financial brands include BOSC, a registered broker-dealer, and TransFund, an electronic funds transfer network — a top 10 network. For the publicly traded BOK Financial, correspondent lending kicked off just three short years ago. The philosophy behind the BOK Financial channel seems clear: The company styles itself on providing clients with a more human touch. The channel’s clients — small banks and credit unions — get the personal attention from BOK Financial they may be missing from other correspondent banks with which they’ve worked. “We offer the multi-line resources of BOK Financial, a $28 billion diversified financial services company, but what sets us apart is the small, boutique feel of how we deliver service,” say company principals. It originates. But it services, too. What does this amount to in practice? The success of BOK Financial’s correspondent clients is “our success,” the company boldly claims. To that end, it “protects the relationships that our clients have with their members and borrowers.” In other words, the bank says it does not seek to appropriate its clients’ clients. It’s a commitment that appears to bear out in the finer points of the financial services company’s bigger picture. This type of ethos, after all, speaks of a kind of all-for-one-and-one-for-all mentality. In the words of the company leadership: “To emphasize BOK Financial’s long-term commitment to the banks and credit unions generating these mortgages, we service correspondent mortgages under the neutral brand name FirstLand Mortgage Servicing. We offer a unique noncompete strategy and go to great lengths to refer customer requests for refinancing, new loans or other transactions back to the originating lender.” As Ross, the correspondent lending leader, recently observed in a HousingWire interview, BOK Financial takes the cautious approach. Asked what was the single, most common mistake made in the burgeoning correspondent space, he responded:

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Senior Vice President Robert Ross , formerly of IndyMac Bank, LendingTree, Genworth Financial and Goldman Sachs, heads up the correspondent lending channel, having overseen the arena since its launch in 2010. With more than 13 years of experience in the mortgage sector, he is well-placed to lead BOK Financial Correspondent Mortgage Services. BOK

“We offer the multi-line resources of BOK Financial, a $28 billion diversified financial services company, but the small, boutique feel of Correspondent Mortgage Services sets us apart.” — BOK Financial Correspondent Mortgage Services
Financial is proud of his record: He is credited with creating a best-in-class, relationship-based platform that is focused on the specific requirements of the small bank and credit union community, the company principals say. Mortgage banking veteran Ben Cowen is the BOK Financial Mortgage president, weighing in with 25 years of myriad experience in the industry, including wholesale and the emerging sweet spot: correspondent lending. BOK Financial points to his track record that includes time as a senior vice president at Wachovia Corp., now part of national banking giant Wells Fargo, where he is said to have nurtured 26 production branches. Cowen spent the vast majority of his career at bank-owned mortgage lenders, including big gun Bank of America, where he was a regional mortgage sales executive in BOK Financial country and, crucially, a divisional sales executive and national operations manager in the BofA correspondent lending division.
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“Growing too quickly. Growth is fantastic, but when you begin to lose focus on who you serve and you are not able to deliver on your commitments, you are beginning to fail.” And these are testing times. Ross conceded many competitors were chasing a smaller pool of business. That’s a situation that should see the BOK Financial correspondent model look to its boutique principles in order to stand apart from the crowd.

EverBank Home Lending
Focused on correspondent channel and ready for growth
Address: EverBank Correspondent Lending 301 West Bay St., Jacksonville, FL 32202 Phone number: (866) 737-2430 Web: everbankcorrespondent.com
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In an uncertain and evolving mortgage and housing market, EverBank is strengthening its commitment to correspondent lending, providing practical solutions to its business partners across the country by offering a range of jumbo and agency products. “I think everyone in the industry finds themselves in a rapidly changing — and to a large degree, very uncertain — market,” said Tom Wind, EverBank’s executive vice president for home lending. “We see a competitive landscape that is evolving every day, and

“We are moving into an extremely challenging time, but with the right investments and relationships, we see significant opportunity.” — Tom Wind, EverBank’s executive vice president of home lending
we are operating in an environment that is increasingly complex. Against this backdrop, the housing market is showing signs of recovery and home prices are rising in many markets across the country. The housing recovery is breathing life into the purchase money mortgage market, but with this recovery, interest rates have begun to trend higher. The shift away from a refi-focused market will cause some displacement in the short term, but from a long-term perspective, that means a more stable and sustainable mortgage market. We are moving into an extremely challenging time, but with the right investments and relationships, we see significant opportunity.” EverBank works with a wide range of correspondents, from small, local market lenders to some of the industry’s largest independent mortgage banks. Its ability to both sell into the secondary market and hold loans in portfolio enables it to make decisions quickly and accommodate the often complex situations faced by its clients’ jumbo borrowers. In today’s competitive and more purchase-driven market, correspondent lenders need a strong partner who can deliver on turn times and resolve issues before they impact a client’s closing commitment. EverBank has developed a team of dedicated relationship managers to work with clients through every step of the process, from registration to purchase. With an experienced team across sales, operations and underwriting, EverBank understands the challenges facing correspondents today. “Relationships are the key to getting deals done today,” says Shelly Kobb, EverBank’s senior vice
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president of correspondent lending. “It’s a bit of a cliché but remains a basic principle we’ve never forgotten. Our sales and operations teams work hand-in-hand with our correspondent lenders, following every detail of the loan process and ensuring the loans are reviewed and purchased quickly and easily. Tying everything together, our relationship managers provide a single point of contact to work with our clients through the entire process.” With roots going back to mortgage servicing in the 1960s, EverBank today is a national leader in home lending. Based in Jacksonville, Fla., EverBank Financial Corp., EverBank’s parent company, has $18.4 billion in assets and $13.7 billion in deposits as of June 30, 2013. The company is a fully diversified financial services provider, focusing on banking and investing, residential lending and servicing, and commercial lending and finance. EverBank’s residential loan originations were $3.2 billion in the second quarter of 2013, an increase of 12% compared to the prior quarter. The company originated record prime jumbo loan volume of $1.1 billion during the second quarter, up 36% from the previous quarter. It serves home lending clients through correspondent, consumer-direct and retail channels, and a warehouse finance business. “We’ve built what we believe is a model home lending organization for the current market and the coming market,” Wind says. “We’re nationwide, with a presence in key markets from coast to coast. We move quickly. And we offer a wide range of innovative mortgage products that resonate with clients today.”

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Tom Wind, executive vice president and head of home lending, joined EverBank in 2011 following positions including co-CEO and CEO of the mortgage lending businesses of JPMorgan Chase and chief financial officer and president of CitiMortgage. Shelly Kobb leads EverBank’s correspondent lending sales and operations. She previously served as senior vice president of correspondent operations at Aurora Bank and senior positions with Bear Stearns Residential Mortgage, National City Mortgage and Countrywide. Shari Ferline is EverBank’s senior vice president, national sales manager, and has more than 18 years of industry experience. She joined EverBank in 2011. Prior to joining EverBank, she held management positions at Mellon Bank, Countrywide, Chase and Aurora Bank.

Guild Mortgage Co.
Crisis survivor’s bid for nationwide footprint
Address: Guild Mortgage Correspondent 6333 Greenwich Drive, Suite 200, San Diego, CA 92122 Phone number: (858) 790-0660 Web: guildcorrespondent.com
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“We expect funding volumes of $1 billion for the correspondent division and the establishment of a national presence for 2014.” — David Neylan, Guild Mortgage vice president of correspondent lending
an assurance to our clients that we will retain servicing, allowing their credit union members and community bank customers to be protected from cross-solicitation of other financial products and services. “We provide our customers access to the secondary and capital markets, without putting their customer in harm’s way.” Both Neylan and Kirkland seem to find themselves in solid territory. In that local, mainstream appearance, their boss and company CEO McGarry was in decidedly buoyant mood. She talked about taking advantage of the opportunities produced by a dislocated market. Indeed, growth through the barren years was achieved as the Guild team picked up some slack from those that fell by the wayside. She now talks in terms of a nationwide footprint, taking the company onto another strata — and a solid one. As far as Neylan’s responsibility goes, in the divisional sphere of correspondent lending, that seems to suggest his contribution is central to the company vision.

The setting is a local one, but Guild Mortgage Co. and its President and CEO Mary Ann McGarry are talking big. “We’re on fire,” she told daily newspaper U-T San Diego, formerly The San Diego Union-Tribune. She uses the word “probably,” but that is the only qualifier in her response when she predicts that the lender’s loan production for 2013 would come in at $7 billion — “another record,” adds McGarry, who has been on Guild’s board of directors since 1988. That was a June interview in the mainstream media. For the San Diego-based private, nondepository lending house and its correspondent lending arm now, the talk is also pretty big. “We expect funding volumes of $1 billion for the correspondent division and the establishment of a national presence for 2014,” says David Neylan, Guild’s vice president of correspondent lending. Here is some context to put these kinds of plans into perspective: In 2007, just as the financial crisis was brewing, reports place the firm’s total loan production at just $1 billion. But that was a figure that by last year, according to the reports, had grown to $6.4 billion. Guild Mortgage swung open its doors for the first time in 1960 in San Diego, which remains the company base. Today, it houses $12 billion in a burgeoning servicing portfolio. To boost correspondent business and bust those lofty targets, Guild is focused on credit unions and community banks. Products include FHA, VA, conventional, USDA and HARP loans. Delivery and monitoring of the loans is done through a proprietary technology platform. The Guild sales pitch to correspondent clients emphasizes the company’s years of successful growth, its track record of being a safe bet. “At Guild Mortgage we are dedicated to providing you the highest level of service and care,” company promotional literature states. “Since 1960, we have gained a reputation built on stability, reliability and dedicated customer service. With several competitively priced programs available, you will be able to find the best one for your client needs at the lowest rates possible.” Neylan puts things in slightly less flowery terms, which you might expect from someone operating at the sharp end of lending and associated risk. But there is also cognizance. “As a nondepository,” he continues, “we make

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At the helm of this Guild correspondent lending vehicle is David Neylan, who joined the mortgage company in 2007, just before the worst ravages of the financial crisis.  Before joining up with Guild, California Mortgage Bankers Association member Neylan managed local branch, regional and national third-party origination divisions, dating back to the mid-1990s. Alongside Neylan is Shawn Kirkland, the national sales manager for the company’s correspondent division. He has been in the mortgage industry for more than 20 years — including time spent in construction lending, wholesale lending and mortgage insurance. For the past eight years, Kirkland has been focused on the correspondent side.
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Prospect Mortgage
Bow and arrow: Prospect aims for correspondent big leagues
Address: Prospect Mortgage Correspondent Division 15301 Ventura Blvd, Suite D300, Sherman Oaks, CA 91403 Phone: (888) 620-2152 Web: prospectcorrespondentlending.com
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“Our expansion plans are controlled but aggressive.” — Amy Brandt, Prospect Mortgage chief operating officer
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When Amy Brandt joined Prospect Mortgage late last year to lead the independent mortgage banker’s expansion plans in correspondent lending and loan servicing, she arrived at an opportune time: The firm had only just launched the latest string to its lending bow — a correspondent renovation loan program. In one of her latest interviews with HousingWire, when she was still Prospect’s president of correspondent lending and servicing, in early July, she outlined her division’s trajectory with a terse statement of intent: “Our expansion plans are controlled but aggressive.” Now ensconced as Prospect’s chief operating officer, Brandt is charged with guiding the operations of the entire Prospect juggernaut. The company is figured to be the second-largest FHA 203(k) lender in the nation. And these days, its sights are generally fixed forward, an idea that appears to be reflected in the breadth and depth of Prospect’s correspondent products. Prospect is also focused on the de rigueur imperative of compliance, which, the company says, has always been a top priority. “Given the shifting regulatory environment of the industry, not only do companies need to have adaptable and robust compliance processes and infrastructure, but they also need to make compliance a part of the core culture of the organization,” says Brandt. “As a correspondent loan buyer, Prospect has embedded critical risk management techniques and systems into its operations.” Prospect’s full correspondent unit, launched in March 2013, covers a multitude of product offerings: from first-time buyer programs, FHA loans and conventional products bound for governmentsponsored enterprises Fannie Mae and Freddie Mac, to emerging products that include the company’s renovation loan program and Credit Forward, a Prospect proprietary niche product for borrowers with FICO scores between 600 and 639. Prospect, a nonbank acquisition group that takes its muscular cues from private equity firm Sterling Capital Partners, has correspondent fulfillment centers in both California and Texas — a ploy aimed at optimizing service and time zone coverage. Which would make sense for a lender shooting for a nationwide footprint. The correspondent division, the company claims, “is uniquely positioned to provide tremendous value in terms of service, price and stability to our client-partners. Our unique approach to creating long-term relationships with each investor-

partner starts with customized agreements around the investor’s unique business requirements and framing our processes around their needs.” Licensed in 48 states and offering what the company describes as consistent underwriting and document requirements, Prospect principally seeks to work with small- to medium-sized lenders, institutions which might need to leverage the support of a bigger enterprise in order to achieve regulatory and compliance requirements. Indeed, Prospect’s blend of third-party and proprietary technology is aimed at zoning in on compliance, along with security and efficiency. Meanwhile, the company aims to provide clients an opportunity to compete on a more level playing field with larger competitors. A point of pride, for Prospect at least, is the fact the firm is not a bank. And it sees that aspect as part of its sales pitch. “We are not a bank,” the lender’s chiefs say forcefully. “Our loans are serviced in-house. We provide rep and warrant relief,” the Prospect principals go on, listing other perks including co-branded servicing opportunities and flexible loan delivery options. And in reference to that correspondent renovation product again, which is perhaps a fitting stopping point to encapsulate what it is Prospect is trying to do to stand apart: “A perfect product for REO properties and an added-value marketing tool, this product helps clients increase their purchase business,” the company says.

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At the helm of Prospect and its correspondent lending operations is Amy Brandt , formerly of Vantium Capital. She is a considerable expert on the mortgage and secondary market industry and the founder of the Residential Servicing Coalition. Alongside Brandt in a transcendent role sits Doug Long, Prospect’s president of national lending. He is considered a recognized mortgage industry leader and is the co-founder of Pinnacle Financial. Meanwhile, dedicated to the correspondent side of Prospect business are Emily Shapiro and Gian Russo. She is the company’s senior vice president of correspondent lending and servicing, and he is the senior vice president of correspondent sales. Shapiro has led finance, risk analytics, servicing oversight and mortgage origination organizations. Russo has held sales leadership positions at a variety of high-volume banking institutions, including JPMorgan Chase and Freedom Mortgage.

First Guaranty Mortgage Corp.
Marrying tech-savvy with a penchant for commonsense origination
Address: First Guaranty Mortgage Corp. Correspondent 1900 Gallows Road, Suite 800, Tysons Corner, VA 22182 Phone number: (800) 296-2275 Web: fgmccorrespondent.com
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For First Guaranty Mortgage Corp., the correspondent lending plank is the perfect addition in the company’s quest to create a one-stop shop for everything from broker to bulk. The national lender also has a footprint in wholesale and retail. And it is at its apparently sterling best in its award-winning approach to the use of tech options in order to smooth the process of correspondent origination. The Tysons Corner, Va.-based company says it uses high-end technology to make the origination process more efficient. According to the company, its founding principles declared that “people are more than numbers” and that education and customer service can prove to be decisive factors in making a difference. Placing importance on quality over volume, the company originates its mortgage loans “using commonsense underwriting, a robust production process and a comprehensive compliance methodology.” To do so, it uses a number of integrated, third-party technologies, and by relying primarily on the Ellie Mae Encompass system and customer relationship management. Things are certainly heating up for the 25-yearold firm, underscoring the importance placed on a robust system. Company principals are shooting for fairly lofty territory: “Approximately $4 billion,” as far as 2014 funding volumes go. “FGMC is purchasing and servicing closed loan production in well over 45 states today and any client that is closing or aggregating mortgage loans is a possible seller.” Recently, FGMC outlined exactly why it had turned the screw on its correspondent business. “There were many factors that played a part” in the decision to ramp up the division, explains CEO Andrew Peters, “ but the largest included having the right people to run it; having the necessary pieces like GNMA (Ginnie Mae) and FNMA (Fannie Mae) approval in place, and having the right servicing platform to manage the portfolio.” And retaining servicing, insists Peters, is the only way to succeed in correspondent lending over the long haul. FGMC targets the full spectrum of smaller players — brokers, community banks and credit unions — with a product catalogue that hits conventional and Ginnie Mae territory. “We do broker, mini-correspondent, delegated and nondelegated correspondent, mini-bulk and bulk bidding, as well as servicing acquisitions,” company principals said. “We offer product options in FHA, VA, FNMA conventional — including

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CEO Andrew Peters served in the mortgage lending industry all 16 years of his professional career. Named CEO in 2011, he has overseen a period of significant growth for FGMC, including the lender’s most profitable fiscal year ever. As CEO, Peters has focused on growing the company’s correspondent lending, capital markets and retail channels, while maintaining the company’s national standing in the wholesale segment. Prior to his appointment as CEO, he was the senior vice president, national business director, where he oversaw significant growth for the company’s wholesale division. In that role, Peters focused on REO lending initiatives, affordable housing and neighborhood stabilization. He spearheaded the rollout of FGMC’s correspondent lending product line, The Correspondent’s Edge. Jeffrey Gibson, managing director of third-party origination flow, has 12 years of mortgage lending experience, and has been with FGMC for six years. He was previously assistant vice president, correspondent division manager. Under his leadership, says Peters, FGMC “has grown into one of the nation’s premier correspondent flow buyers.” Before joining FGMC, Gibson was with Aurora Loan Services, where he spent five years. Previously, he served with Wells Fargo. Mark Mayhook , managing director of capital markets, has been with FGMC since 2011. He has been responsible for establishing and growing FGMC’s capital markets line. Mayhook joined the firm with almost 10 years of experience in the industry, much of it in correspondent sales and trading. Before FGMC, Mayhook worked in sales and account management for Morgan Stanley’s correspondent conduit.

“FGMC is a leading national alternative to many of the traditional lenders for correspondents seeking liquidity and those seeking accommodation for a number of nontraditional loan scenarios.” — FGMC company principals
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DURP, Homepath and Manufactured Home — USDA and more. “FGMC is a leading national alternative to many of the traditional lenders for correspondents seeking liquidity and those seeking accommodation for a number of nontraditional loan scenarios.” From here on in, the plan appears to be to sharpen the company’s correspondent focus. “Over the next 12 months FGMC will continue to grow our sales and marketing platforms,” the company says, “and back those up with solid pricing, products and operational support — and we expect to double our current production at a minimum.”

BofI Federal Bank
Plowing a jumbo trail
Address: BofI Federal Bank Third Party Lending 4350 La Jolla Village Drive, Suite 140, San Diego, CA 92122 Phone number: (888) 781-2117 Web: bofifederalbank.com
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BofI Federal Bank is in the jumbo game, and it pushes some serious super jumbo mortgage solutions to mortgage bankers, brokers and other financial institutions with the net worth to back up such hefty correspondent lending products. There is a sizable marketplace up for grabs.

“We have broad guidelines surrounding property and occupancy types. Because we do not aggregate agency or government loans, we maintain excess capacity, allowing for exceptional turn times.” — BofI Executive Vice President, Chief Lending Officer Brian Swanson
With more than $3.09 billion in assets, the San
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thrift jumbo *Diego-based * * * * * provides * * * adjustable-rate *
*to $10 * * * * * million.

and super jumbo products with loan amounts up
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* It * launched * * * the * jumbo-super * * * * jumbo origination

platform in 2010. When it launched the offering, it * * * * * * * * * tapped several former Thornburg Mortgage veterans, *filling * * *of the * team * * dedicated * out* the* rest to the channel with other former Thornburg employees. * * * * * * * * * * As a publicly traded financial services company, *it bears * * certain * * * * * * * help set it apart. elements that In the words of BofI President * * * * * * * * * * and CEO Gregory Garrabrants: “We aspire to be the most innovative * * * * * * * * * * branchless bank in the United States, providing services *products * * and * * * * superior * * *to our competitors, branch-based or otherwise.” * * * * * * * * * * It is controlled by BofI Holding and also oper*ates * brand * * names * * such * *as* * of Internet USA, Bank Apartment Bank and NetBank. * * * * * * * * * * The firm is no stranger to strategic alliances. *In * * * 2011, * * it * joined * * forces * January with Capital its Bank of Internet *Markets * * Cooperative * * * * through * * * brand to provide CMC clients specialized jumbo * * * * * * * * * * loan products. * In * its * approach * * *to underwriting, * * * * the company attempts to apply a commonsense methodology, say* * * * * * * * * * ing it strives to look beyond the numbers in order *to determine * * * * * value * *and * risk of a borrower. the* true loans with either *“The * majority * * *of our * * * are * approved * a credit or collateral exception,” the company says. * * * * * * * * * * So there appears to be a certain flexibility around *the *BofI * name. * * * * * * * The company lists certain features it believes * * * * * * * * * * distinguishes BofI niche products. These include
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asset depletion and pledged asset loans. The institution also believes it goes the extra mile by providing liquidity for complex jumbo and super jumbo transactions. “We have broad guidelines surrounding property and occupancy types,” says BofI Executive Vice President, Chief Lending Officer Brian Swanson. “Because we do not aggregate agency or government loans, we maintain excess capacity, allowing for exceptional turn times.” On the tech front, the company operates an electronic loan delivery platform. “BofI Federal Bank leverages cutting-edge technology to provide you with complete paperless loan submission and processing,” the company explains. “Turn times for approval and processing are significantly reduced through 100% imaging of all loan documents.” For BofI’s capital markets arm, which operates out of the same single location as the rest of the company, it is all about bulk. “Our capital markets division focuses on the origination of commercial and industrial loans in target vertical markets as well as bulk loan purchases and sales to help our customers diversify loan portfolios, generate fee income and manage their balance sheets,” company principals say.

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At the helm, of course, is Executive Vice President, Chief Lending Officer Brian Swanson. He has experience building a retail call center, distributed retail lending channel and a wholesale lending division. Swanson is currently focused on building the retail, wholesale, correspondent, warehouse and multifamily/small balance commercial lending channels for BofI Federal Bank. In this realm, an emphasis has been placed on growing portfolio loan production. Before joining BofI Federal Bank, Swanson was a vice president with Bank of America, where he piloted its dedicated purchase call center in Orange County, Calif. He began his career in the mortgage business as a retail loan officer with E-LOAN. Success there landed him a position with a top-five mortgage lender in 2005. In that position, he served as a regional vice president in the company’s wholesale lending division, taking a lead role in the acquisition and integration of the company’s distributed retail lending platform.

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CMG Financial
Swinging for the second deck: CMG outlines grand correspondent plans
Address: CMG Financial Correspondent Lending 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 Phone number: (925) 983-3000 Web: cmgfi.com/correspondent.php
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Terri Davis is plugged into the coming realities of a contracting lending space. Interest rates are increasing, of course. And her company, CMG Financial, has big plans for its correspondent lending channel. But more firms are entering — and they are often aggressive. Yet CMG’s senior vice president of correspondent lending is unperturbed. “Margins have definitely compressed and we have observed new entrants are aggressively priced as they enter the market,” Davis recently told HousingWire. “It seems likely that rising rates will reduce production volume and result in even more margin compression.” But there is a steely determination: “CMG is well positioned to compete in this environment.” Established in 1993, CMG Financial is a privately held mortgage bank headquartered out of San Ramon, Calif., and a division of CMG Mortgage. It serves homeowners in 44 states and Washington, D.C., offering a full slate of correspondent products. A Fannie Mae/Freddie Mac direct seller/ ser v icer and approved Ginnie Mae issuer, CMG Financial offers conventional, FHA and Streamline, VA, IRRRL, ARMs and jumbo products. Additionally, CMG brings USDA, unlimited LTV Home Affordable Refinance Program, or HARP, and Fannie Mae HomePath programs to their full-scale product alignment. And the company is shooting for the cusp of the bigger leagues. “We expect to originate $6 billion through the correspondent channel for 2014,” Davis projects. CMG is also pushing ahead on the tech front. It said it’s immersed in a technological evolution, with a sharp focus on developing a correspondent lending portal that allows customers to submit, track and fund their loans through a single pane. “Our correspondent portal,” Chief Technology Officer Robert Wahlia explains, “will provide flexibility for customers to display the information to their standards, customize their reporting metrics and schedule updates at their discretion. “In the fast-paced correspondent environment where transaction time is paramount, it’s our goal to supply the seller with the tools to suit their business needs. This system is proprietary and under construction at this time.” Relationships, says CMG Financial President and CEO Christopher M. George, matter company-wide. “Our business philosophy is centered on words like

trust, loyalty and consistency,” he explains, “characteristics that help create and support high-quality, long-term commitments. Our goal is to form partnerships with established sellers and providers, and deliver services in a method tailored to exceed our clients’ needs and expectations.” CMG Financial can point to the fact that it was once a broker, having made the transformation to banker. It can perhaps relate to, even empathize with, the common obstacles all manner of clients face in the correspondent realm. Granted, the lending climate of today is quite a bit different than in the recent past. “We understand these signposts better than larger institutional lenders,” George goes on, “because we’ve grown our business in the very same footprint as many of our customers. We’ve experienced firsthand the pains experienced along the way, and the solutions found to avert those obstacles in order to flourish.” Above all, CMG says its correspondent platform is designed to optimize the growth and goals of individual partners. That could prove a fruitful road to go down, as George notes. “We understand that no two partners are at the same point on their business trajectory,” he concedes. “CMG is positioned to provide the resources and support for emerging bankers, while excelling at agile solutions for larger, established partners. Our position ensures steady, balanced growth for both sides of the relationship, no matter the coming climate.”

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the way, and the solutions
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found to avert those obstacles in order to * flourish.” * * *

— CMG Financial * * * President * * * and * *
* * * M. * George * * CEO Christopher * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

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Christopher M. George is the founder, president and CEO of CMG Financial. He is also president of the California Mortgage Bankers Association, and serves on the board of directors of the Mortgage Bankers Association. Terri Davis, senior vice president of the correspondent division, has 28 years of experience. She is credited with the ability to develop collaborative partnerships internally and externally, deliver high-value solutions and create effective sales and marketing strategies. Davis began her career in 1985 in various capacities of the industry. By 1994, she was the director of marketing for PMI Mortgage. Post-PMI, she began a lengthy 19-year tenure at Fannie Mae, where she led in multiple vice president capacities. Today, Davis continues to lead at CMG Financial, on the company’s correspondent lending arm.

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Impac Mortgage
Impac re-emerges leaner and meaner — in shape for expansion
Address: Impac Mortgage, Correspondent 19500 Jamboree Road, Irvine, CA 92612 Phone number: (888) 850-0259 Web: impaccorrespondent.com
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“We have rebuilt the company with a renewed industry strategy and work to align ourselves with lenders who mirror our principles for responsible lending, prudent underwriting and fraud prevention.” —Impac Mortgage principals

Impac Mortgage was one of the true survivors of mortgage finance following the housing crash of 2007 and 2008. Since, the company has consolidated. More importantly, as one of the correspondent lending big guns, it has proved adept at distinguishing itself from the big subprime players, pointing out it was focused on Alt-A borrowers — and not taking on the same level of risk. In other words, Impac, founded in 1995, made strides to ensure its borrowers could afford the loan they were being offered up. Today, it lists its focus in five broad channels of target business and lending: retail, wholesale, correspondent, warehouse and portfolio recovery services. Having re-entered the correspondent space last year, Impac’s correspondent division operates under Excel Mortgage Servicing, which is a subsidiary of Impac Mortgage Holdings. Target figures for next year are fairly lofty. In the words of company principals: “Expected volume for the correspondent lending unit in 2014 is $1 billion. In addition, we are now accepting applications for our new warehouse lending division.” And those they see feeding their correspondent machine are the likes of community banks and credit unions with a minimum net worth of $1 million. “Led by seasoned industry executives,” the company says, “the correspondent lending team provides credit unions, banks and mortgage banks with an ideal business partner that is devoted to each client’s success. Impac Mortgage is a direct Fannie Mae, Freddie Mac and FHA, VA and USDA lender. “The correspondent lending team functions as an exit-based investor for our business partners, providing a source of liquidity and a dependable outlet for a diverse set of mortgage loan products on a flow and bulk basis.” In tandem with agency and government products, Impac cites a 203(k) renovation option and jumbo. Drilling down to the finer points of the correspondent side of its business, the company goes on to highlight its warehouse lines, which range from $3 million to $10 million. “There is same-day funding availability,” the firm goes on. “We are a national platform, accommodating wet and dry funding. Products include FHA, Fannie Mae and Freddie Mac HARP (Home Affordable Refinance Program) up to 150% LTV, conventional, VA, jumbo up to $3 million, and 203(k) renovation loans.” Like some others in the correspondent space,

Impac is keen to highlight the fact it will not poach the clients of its lenders. “Impac Mortgage is focused solely on the lending industry and is not a bank, therefore we do not compete with our clients for deposits or other nonresidential consumer mortgage products,” the company explains. “Our senior management, with an average of over 25 years of hands-on experience within the mortgage, real estate and consumer arenas, led the company through the crisis of the past decade with steadfast determination, integrity and vision.” Just as the mortgage company was keen to distance itself from subprime lenders that fell by the wayside post-crash, Impac principals point to the firm’s commitment to responsible lending going forward. “We have rebuilt the company with a renewed industry strategy and work to align ourselves with lenders who mirror our principles for responsible lending, prudent underwriting and fraud prevention,” they say. How does the company help keep clients happy? “We enable our clients to generate additional revenue by expanding their product offering with niche programs such as 203(k) renovation loans, coupled with the opportunity to leverage our warehouse lending platform,” the company points out. There also appears to be a commitment from Impac to aid the ground-level business of its lender clients by offering marketing assistance. It makes business sense, really. And it might also illuminate the kind of practice to help explain why Impac is still around.

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Nancy Pollard is an Impac executive vice president and has managed the capital markets division for the company since June 2006. In late 2011, she facilitated the relaunch of the correspondent lending division, which has grown to $80 million-plus per month and is a major contributor to Impac’s profitability. She has more than 25 years of experience. Bill Ashmore is the company’s president and chief operating officer. He has been serving in this capacity since August 1995. Since 1995, Ashmore has overseen the origination of more than $90 billion in residential and commercial originations, of which $60 billion was securitized. In addition, he was responsible for managing $30 billion in mortgage assets. He has more than 30 years of experience in mortgage banking.

New Penn Financial
Treading the waters of nonagency for a broader borrower mix
Address: New Penn Financial Correspondent 4000 Chemical Road, Suite 200, Plymouth Meeting, PA 19462 Phone number: (877) 920-7366 Web: newpenncorrespondent.com
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When New Penn launched its new correspondent channel just over two years ago, the company was attempting to fill a gap it saw in the market for the purchase of nonagency loans. New Penn President and CEO Jerry Schiano viewed the venture as a way to target approved clients with a unique set of loan programs, thereby serving a broader swath of customers. As the Shellpoint Partners-owned company’s vice president of correspondent lending describes, it’s an operation with a wide net. “NPF’s TPO (third-party origination) channel serves large and small mortgage bankers, community banks, credit unions and mortgage brokers through our correspondent, mini-correspondent and wholesale platforms,” says Lisa Schreiber, who was recruited to lead the company’s correspondent business in February. “Our clients get the advantage of accessing a broad-based product set including jumbo, portfolio and agency programs in the ways that suit their operational requirements.” The company, which also operates retail, directto-consumer and wholesale channels, didn’t reveal any target funding volumes when HousingWire asked for a 2014 estimate. But Schreiber did indicate an expansion was in the works. “NPF is purchasing loans through a vast network in 46 states currently,” she explains. “Over the next 12 months, we expect to grow our opportunity to 48 states with a much broader client base, which will afford expediential growth.” There is a dual methodology behind this expansion. “We will look to accomplish this goal by working with our clients on quality-based programs and communication as well as continue to focus on gaining efficiencies that benefit both our client experience and our ability to produce high-quality loans,” Schreiber continued. These loans include the company’s proprietary Jumbo Advantage, agency fixed, adjustable-rate and Refi-Plus, along with foreign national programs. They are each available through the correspondent and mini-correspondent lines. Additionally, the company’s wholesale channel offers both FHA and VA loans. Schreiber believes today’s regulatory demands and changing market environment bring disruption, but reckons her company is positioned to meet the challenges facing the mortgage industry.

“New Penn is in an enviable position as we are * * * * * * * * * both a conduit and a portfolio lender. This allows * * * our * * * * line,” * * us to develop and securitize product Schreiber says. * * * * * * * * * “The advantage for our clients is not only access * * options * * * to* * their * * to a broader set of product meet borrower needs, but also * * the * ability * * to * offer * both * * bank and broker options, depending on the prod* * * * * * * * * uct selected. * clients * * on * a greater * * percent* * * “By working with our age of their business, we can gain greater efficien* * * * * * * * * cies and higher quality production together.” * sees * New * * * * * * * Above all, Schreiber Penn’s correspondent lending channel*as * a way to achieve quality * * * * * * * volume at a low production cost. * * * * * * * * * “New Penn is uniquely positioned,” she says. * our * * * production, * * * * we * “As we are securitizing loan can look to develop product for the marketplace.
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“New Penn is uniquely positioned. As we are securitizing our loan production, we can look to develop product for the marketplace. We are not limited to agency, or as a pass-through to larger institutions.” — Lisa Schreiber, vice president of correspondent lending for New Penn Financial
We are not limited to agency, or as a pass-through * * * * * * * * * * * * * * * * * * * to larger institutions.”
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Lisa Schreiber is vice correspondent * president * * *of * * * * * lending for New Penn Financial. As a former senior * * * * * * * * of * manager for Ellie Mae, Net More America, Bank America and American * Brokers * * Conduit, * * * Schreiber * * * continues to lead the vision and implementation of * * * * * * * * * quality-oriented, third-party origination channels * * * * * * * * * and platforms. Throughout 2011 and 2012, Schreiber was in charge of the implementation of Ellie Mae’s Total Quality Loan program, working directly with correspondent leaders at Wells Fargo, Citibank and Homeward Residential, among others. As a mortgage banker with more than 25 years of experience, she is now working to bring that knowledge and background to New Penn’s correspondent lending channel. She was recruited to her role at New Penn earlier this year.

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LenderLive Network
Bidding to support community banks and credit unions
Address: LenderLive Correspondent Lending Services 710 South Ash St., Suite 200, Glendale, CO 80246 Phone number: (800) 891-2281 Web: lenderlive.com
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“With LenderLive, clients obtain a competitive product offering and loan purchase program for loans they do not want to hold on their balance sheet, plus no retail channel conflict.” — LenderLive Network principals
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Earlier in August, LenderLive Network announced that it had secured Ginnie Mae-issuer status. Boom. And the company hailed the milestone as a boost to its correspondent lending business. “With the ongoing changes in the market, it is imperative that we continue to enhance our product and service offerings,” Rick Seehausen, president and CEO of LenderLive, told HousingWire at the time. “Becoming an approved Ginnie Mae issuer is just one way we strive to provide our customers with the products and services to meet their specific business needs.” Obtaining access to Ginnie Mae, Seehausen explained, meant his company could help banks, credit unions and private investors with private-label subservicing, while expanding the products accessible through LenderLive’s correspondent business. That’s a significant step for a firm that is a mortgage partner to the Independent Community Bankers of America, which serves more than 4,000 community banks, and CO-OP Financial Services, a cooperative of more than 2,500 credit unions nationally. And there is this: “Nondelegated correspondents can limit the credit risk inherent to mortgage lending and can obtain seamless access to capital for their funded-loan production,” the company says. “Our conforming loan purchase program is designed for the loans our clients do not desire to hold on their balance sheet and is supported by dedicated, seasoned mortgage lending professionals.” Indeed, LenderLive has been supporting financial institutions build residential mortgage business for more than 23 years. With a 2014 funding target of $2 billion, it aims to target mortgage providers of all sizes, but focus on community banks and credit unions. “We offer traditional delegated and nondelegated options as well as a fulfillment program providing clients a comprehensive, private-label origination solution, with the option to sell loans to LenderLive, the GSEs or retain in portfolio,” company principals told HousingWire. They point to a long history of dealing with community lenders. “With LenderLive, clients obtain a competitive product offering and loan purchase program for loans they do not want to hold on their balance sheet, plus no retail channel conflict,” the principals go on. “We don’t compete with our clients to cross-sell banking products or to solicit mortgage customers for refinance or purchase business.”

The company cites advanced tech backup to aid origination. It uses Web-based proprietary technology in an effort to gain operating efficiencies and electronic file delivery. The little guy appears to be at the heart of LenderLive thinking. In this vein, the company paints itself as a kind of linchpin outfit for credit unions and community banks. “LenderLive is an established provider of loan fulfillment services to banks and credit unions across the country,” the principals explain. “Through our correspondent lending program, we also help those institutions manage credit risk and optimize balance sheet performance.”

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Dave Vida is president of loan servicing for LenderLive Network and operates as the company’s chief strategy officer. He has more than 20 years of extensive experience in mortgage banking, working for both large, publicly traded companies and fledgling startups. During his career, Vida has built and run numerous loan servicing and origination companies. Prior to joining LenderLive, he served in a number of leadership roles involving mortgage finance. He was president and co-founder of City Mortgage Services, building a large national servicing division and helping lead four retail brands and a correspondent lending division. Elizabeth Deal is the executive director of community lending for LenderLive, where she supports the residential lending needs of community banks and credit unions. She has more than 28 years of extensive experience in the mortgage industry. Prior, Deal was with ICBA Mortgage for 22 years where she focused on providing community banks the lending products, options and services to help them compete and succeed in the mortgage market. Before ICBA, Deal worked in the northern Virginia mortgage lending industry. Robert Kallio is senior vice president of the LenderLive correspondent lending division. He has more than 20 years of experience in financial services. Before joining LenderLive, he was the vice president of business development at Nationwide Advantage Mortgage in Columbus, Ohio, where he was responsible for the company’s correspondent lending and subservicing business divisions.

NexBank
Horses for courses: NexBank accentuates noncompete approach
Address: NexBank SSB 2515 McKinney Ave., Suite 1700, Dallas, TX 75201 Phone number: (800) 827-4818 Web: mortgage.nexbank.com
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There’s a hint of the old warhorse about NexBank. It saw the worst economic calamity the 20th century had to throw at the country in the form of the 1930s Depression, and then the worst financial crash since as the Great Recession wrought its mayhem. These were testing times all round — in both epochs. But neither the ravages of the ’30s nor the recent economic slowdown were enough to stop the NexBank juggernaut. An institutional lender originally founded in 1922, the Dallas-based company launched its current correspondent channel in May 2011 with the intention of hitting smaller market operatives such as community banks and brokers. The goal, company leaders say, is to arm these types of institutions with the ability to provide mortgage solutions while allowing options to deliver files both delegated and nondelegated. Today, the lender underlines its commitment to those correspondent lending target clients with a reassuring reminder that it is not in the business of stealing their borrowers. “We offer a different line than the larger aggregators,” company principals explain. “We are an institutional lender, meaning we do not specialize in retail.” Addressing potential third-party originating partners directly, the principals go on: “So you should feel confident in that when you do business with us, we are not competing with you both from a retail and mortgage bank perspective. “We believe in service, service, service — no need to dial a 1-800 number only to be placed on hold. Call us direct; we pick up our phones.” For 2014, NexBank wants to reach $1.2 billion in volume production. The company is part of NexBank Capital, a fully integrated financial services organization that also includes a broker-dealer, and an investment banking and corporate advisory firm. In the correspondent space, the firm offers conforming, nonconforming, government, jumbo portfolio product, jumbo scratch-and-dent and warehouse lines. NexBank also purchases mortgage servicing rights and co-issues. The institution uses a third-party mode of technological backup to deliver its product offerings. But what gives NexBank that X-factor in a growing field of operators competing for an evermore constricted pool of business? One NexBank executive has an answer. And it’s

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EXECUTIVES

John Holt Jr., is NexBank president and CEO and was elected to the company board on June 23, 2011. He brings nearly three decades of experience to his role at the summit of both NexBank Capital and NexBank SSB. In addition to business development, capital market transactions and credit risk analysis, his strategic thinking and operations management are at the heart of the day-to-day performance of the banking organization. Before joining NexBank, Holt was chairman of the board and CEO of Southwest Securities FSB. He was at the helm as the bank grew from an institution focused primarily in Arlington, Texas, to the fourth largest bank headquartered in Dallas. Matt Siekielski is senior vice president and chief operating officer. As COO for NexBank, Siekielski has direct responsibilities for commercial banking, mortgage banking, deposit operations and Treasury management. He also serves as a member of the executive management team as it relates to strategic planning and overall business development initiatives. Prior to joining NexBank, Siekielski was a senior vice president with Southwest Securities, where he was a member of the senior and executive-level management teams tasked with strategic planning and commercial lending. Gabe Medrano is regional sales executive and responsible for growing the correspondent business channel nationwide. Medrano brings nearly 20 years of experience in all aspects of the mortgage space, from the secondary markets through to portfolio servicing. And he bears a professional background that is studded with some of the larger names in finance: Prior to joining NexBank, Medrano held management roles with such financial services companies as Citibank, Goldman Sachs and Wells Fargo.

OCTOBER 2013 ❱ HOUSINGWIRE 71

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W H O W E A R E WAT C H I N G

one again aimed squarely at the door of potential future lending partners “In one word, we negotiate, which in the last couple of years is unheard of,” says Gabe Medrano, NexBank regional sales executive. “We believe in doing business the old-fashioned way, with a modern-day touch. Give us a shot, you will not be disappointed.” That’s a mighty pitch. And history suggests it’s one that carries a great deal of velocity.

“In one word, we negotiate, which in the last couple of years is unheard of. We believe in doing business the old-fashioned way, with a modern-day touch. Give us a shot, you will not be disappointed.” — Gabe Medrano, NexBank regional sales executive

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