July 30th, 2012

Super-Sized Loans, Part II: Dealing with a void in the secondary

Posted by at 9:54 am

A void clearly exists in markets like California’s esteemed Santa Barbara region and for homes perched precariously atop the seaside cliffs of Malibu, Laguna Niguel and La Jolla. Bankers struggle to offer jumbo products directly, and at a time when so many loan originators wish they could increase their volume, a rebounding jumbo market is out of reach to them. Limited secondary outlets, balance-sheet management and the dread of owning unsellable paper repel most mortgage lenders from offering non-agency jumbo loans like a cross drives away a vampire. As a result, most lenders have expanded their offerings through indirect means, including correspondent and wholesale lender relationships. Brokering jumbo loans to wholesale lenders is easier than banking and selling them to a secondary investor. Banking big, non-agency loans requires that the mortgage lender have warehouse approval, investor approval and balance-sheet net...
Read more
July 2nd, 2012

Ask Our President: Who Are Your Mentors?

Posted by at 8:10 am

You have mentioned Jim Corbett as your mentor. Do you have any other mentors who may have guided your professional career? At Bay Equity, we have a pretty strong team that collaborates and navigates through a variety of issues on a daily basis. Jim Corbett is definitely a mentor of mine in a bigger sense of providing me with the entrepreneurial spirit to seize the opportunity and start Bay Equity. He showed me that if you do things in a sound, ethical and transparent way, success will follow. Charles Hine also was an important mentor for me as I grew up in the business world in commercial real estate. Charles was instrumental in teaching me valuable life lessons, including how to treat people, how to handle yourself with honesty and integrity, the value of a strong work ethic, and how...
Read more