October 29th, 2012

Ask Our President: The Future of Bay Equity

Posted by at 11:35 am

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What do you see in the future for Bay Equity? I think we have a tremendous opportunity for continued growth. The big banks are a little dysfunctional in some measure with the way they are pulling back from the marketplace. Bay Equity’s geographic footprint is limited to California, but we have measures in place to expand both our wholesale and retail channels initially into the northwestern United States. We are adding new branches and have the right team members in place to lead this expansion. Just this summer Bay Equity acquired the assets of Hometown Lending, an established mortgage bank that has been serving the lending needs of real estate professionals, builders and individual homebuyers throughout the Pacific Northwest for more than 15 years. Included in the acquisition are Hometown Lending’s 33 retail locations and nearly 100 employees, all of...
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October 15th, 2012

Supersized Loans Part V: Then there’s portfolio lending

Posted by at 4:49 pm

Bay Equity Home Loans is finding it helps to be creative when originating jumbo loans today. When agency jumbo programs just do not fit, an originator needs to convey non-agency options fast. Portfolio asset-based loans are a good place to start. Scroll down your wholesale lender list and seek out a portfolio lender that offers an asset-depletion loan. This is one of the only creative ways for a lender like Bank of Internet Federal Bank and Kinecta Federal Credit Union to lower debt ratio. Some lender guidelines (including Fannie Mae agency jumbo) trust that a percentage of the asset can be counted on to supplement a borrower’s income at a steady 360-month pace. Not much is taken into account for what the borrower or the account’s custodian does with the semi-liquid assets later. But underwriting to the asset value at...
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October 1st, 2012

Ask Our President: Biggest Threat to Mortgage Bankers

Posted by at 8:03 am

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Are there any industry-related issues that keep you up at night? What do you see as the biggest threats to your business as a multi-channel mortgage banker? The uncertainty of the regulatory environment is a big concern, along with the uncertainty of the Consumer Financial Protection Bureau (CFPB). The CFPB is an unknown for a lot of us who are working hard to maintain a compliant business and simply do business the right way. Will new laws be passed that will further impact the way we do business? At what point will all of this ease up? While the laws passed have weeded out a lot of the part-timers in the industry, uncertainty about the state of the regulatory environment remains. The landscape of the industry is also changing. Big banks like GMAC and Bank of America are getting out...
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