May 9th, 2013

Bay Equity Launches Private Client Group

Posted by at 6:44 pm

Bay Equity Wholesale Lending has launched a Private Client Group (PCG). Led by Executive Vice President Spencer Richardson and Director of Northwest Operations Sam Lindstrom, the PCG is an intentionally different by design approach to wholesale lending. The PCG will partner with a limited group of exclusive clients to focus on building relationships and developing an expert understanding of those clients’ needs. Based in Tacoma, Wash., the new division will complement Bay Equity’s current wholesale group. The base of operations for the Private Client Group is the ground floor of an historic warehouse. With exposed brick and open ductwork running through high ceilings, the industrial-style building characterizes the energy and innovation behind this bold, new division...
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April 30th, 2013

Freddie Mac Launches New Online Tool for Lenders

Posted by at 9:33 am

Freddie Mac today announced Loan Quality Advisor. This is a new online loan tool that gives lenders an automated way to identify credit, data and purchase eligibility issues before they deliver loans to Freddie Mac. By helping lenders spot and fix potential problems earlier in the loan manufacturing process, Loan Quality Advisor can make Freddie Mac’s purchase requirements more transparent and give lenders greater certainty in the loans they sell to Freddie Mac. Loan Quality Advisor also gives lenders Freddie Mac’s view of credit risk on mortgages that were not originated on Loan Prospector®, Freddie Mac’s automated underwriting service. Loan Quality Advisor marks the launch of Freddie Mac’s new Greater Purchase Certainty initiative to help lenders improve loan quality while making business with Freddie Mac more efficient and transparent for all Freddie Mac customers. Attribute to Mike Dawson, Vice President of...
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April 25th, 2013

Bay Equity Gives Back

Posted by at 7:00 pm

We don’t only make loans happen at Bay Equity! Our employees are involved in their communities and as a company, we support a variety of great causes, including: American Cancer Society American Red Cross San Francisco Food Bank Sacramento Entrepreneurship Program Habitat for Humanity The Warrior Foundation Notes from grateful charities: 16th Annual American Cancer Society’s Golden Gate Invitational:  “I want to express my sincere gratitude for your generous participation and support. This year’s event raised $402,015, which brings the total amount raised since the tournament’s inception in 1997, to $5 million!!!! That amount is amazing and those dollars have an enormous impact on the fight against cancer by supporting research, education, advocacy and patient services. YOU are truly saving lives and creating a world with more birthdays.”  -Abby Neil Director, Special Events, California Division American Cancer Society, Inc. The Warrior Foundation: ...
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April 17th, 2013

HARP Has Been Extended!

Posted by at 9:46 am

The Home Affordable Refinance Program (HARP) has been extended to December 31, 2015. That’s more time for borrowers to get a lower interest rate or more stable mortgage if they owe more than their house is worth, make timely mortgage payments and the loan is owned or guaranteed by Fannie Mae or Freddie Mac. HARP Extension News Release...
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October 29th, 2012

Ask Our President: The Future of Bay Equity

Posted by at 11:35 am

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

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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September 24th, 2012

Super-Sized Loans, Part IV: The FHA/VA lending opportunity

Posted by at 4:52 pm

Being a Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) lender helps mortgage lenders accommodate about 30 percent more pre-approval requests. With so many high-balance home sales in California, lenders have found FHA and VA loans to complement their offering of agency jumbo loans. With the expiration of the temporary high balance conventional loan limits, borrowers are looking to FHA and VA as an alternative. Today the maximum conventional loan is $625,500 for the highest median home markets. However, FHA still insures loans for 1 unit homes to $729,750 in the highest median home priced markets (more for 2-4 units). VA is allows borrowers to qualify on a completely different schedule. They will insure 25% of the difference between the VA Loan limit by County and the lesser of the value or purchase price. The max VA will...
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September 3rd, 2012

Ask Our President: Business Models for Mortgage Brokers Versus Mortgage Bankers

Posted by at 12:02 pm

Could you define which business models are best for the mortgage broker and which are best for the mortgage banking branch? There is just such a mixed bag out there that I don’t think you can pin it down to saying that a certain model works best. I think it’s more in each individual circumstance and how professionally run the mortgage brokerage operation is. Bay Equity has a diverse group of retail offices that drum up business in all different ways, from a call center model to purchase business-driven realtor relationships, to long time LOs who have their own book of business. We also have a new branch in San Francisco that fits the last category. Manny Kagan’s office is the longest-running mortgage brokerage in San Francisco, having opened its doors in 1984. Manny has loan officers who have been...
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August 27th, 2012

Super-Sized Loans, Part III: Explaining Debt Ratio

Posted by at 12:53 pm

A common problem for both jumbo loan borrowers and investors is the debt ratio. The wealthy (aided by their financial advisors) are extremely crafty at not showing income. When they attempt to qualify for their loan, it is common for this demographic to not understand why showing $500,000 in gross income is not enough to get a $1 million loan with 30 percent down. It takes a savvy, experienced–and equally crafty–loan officer to tactfully explain that $468,000 in expenses and deductions means they have a bottom ratio of 248 percent. After explaining this, one would be wise to duck for cover or move the phone six inches away from the ear, since the seemingly entitled borrower will be frustrated to the point of finger pointing, epithet hurling and raising the volume several decibel levels. The typical wealthy patron will blame...
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