Any time you change companies it can be a scary situation. Since I've been in the mortgage trade 30 years, I've seen lots of companies. I've lived through lots of change and transition. You never know for sure but try to make an intelligent decision based upon your speculation of what the future may hold.
Market Position vs. Market Timing
Like so many things, the mortgage industry is cyclical, holding very high highs and very low lows. The position a company wants to be in is ahead of the good market so they reap benefits before all the johnny-come-latelys jump in to mess up a hot market with greed. We've all watched the last ten years when anyone could make money in selling loans. That was an extended version of the market but the "order takers" are gone now and you need to know your trade and work hard to bring value.
There is also a trend that changes between being a broker and a banker of loans. A broker has little control but can shop for the hottest product of the hour. A banker has much more control but must withstand the changing winds of the competition.
Very few companies can amount the capital needed to handle the three parts of the industry; origination, underwriting and servicing. In most cases an organization that does all three is so large they lose any service level or personal touch. As a result many originators default to selling mortgage rates rather than value.
What originally attracted me to Stonegate Mortgage is their position in the market and the strategy they are applying. We are technology driven because the founder comes from a background of developing underwriting engines for the mortgage industry. This is a key for efficiency and communication. We also put lots of energy into Real Estate training. The other key point is the ownership of a servicing department to keep control of the process from beginning to end. This not only gives the company more stability, it allows for fewer hassles for borrowers caused by investor overlays during the process of selling the servicing rights.
Products for the Market
Stonegate has taken a position to offer a full board of available products and are able to do this because they service the loans themselves. In addition, they have developed an in-house department to support more involved products that help solve challenges in this market environment and help sell Homes in Indianapolis.
The HIP (Home Improvement Products) department is something rarely available. Most companies will not fund these programs because they don't understand how to manage them. These products include the FHA 203k (mini and maxi), the FNMA Homestyle and the FHA less than 90 day flip product. These are products that can create Realtor commissions where there were none without them.
In a market with lots of Bank Owned Homes, we have to manufacture ways to liquidate the inventory. A home owned by a bank that has deferred maintenance is a challenge to sell to a buyer with limited cash or sophistication. There is a gap between the white elephant it is and the princely home it could be. By using the 203k or Homestyle your client can close the purchase "as-is" and do the remodel after closing to their specification. That property is now a good deal for a homeowner. Before you were waiting for a "developer" and now you have a pay check. The 203k maxi is very hard to find and can handle major remodel amounts above $35,000 in cost. The Homestyle is also available to investors at a 70% loan to completed value. That's hot!
Stonegate will also lend on properties that have been owned less than 90 days but had significant improvements. Ask your investors how many lenders do that. And we have a combined construction permanent loans. I thought that became extent but it lives.
The Stonegate Staff
Stonegate is located in Fishers, In. and the processers, funders and underwriters are in that building. That is local knowledge and local access. We don't go over three time zones. We know how Indiana works and what makes sense to Hoosiers.
The bottom line is service. We are competitively priced, which is nice. But the staff works hard to get deals done and get them done quickly. This is a good dream and I'm very happy with my move. Try us out. I think you'll like it.
