ow here’s the good news. A combination of moderate rises in mortgage rates and dipping growth in
home prices is projected to boost existing- and new -home sales through
2020, according to Freddie Mac. In fact, the overall U.S. homeownership
rate edged up in this past third quarter, and the share of millennial-age
buyers who own homes also rose.
That’s great news for a market that has seen prospective homebuyers
squeezed by a combination of tight inventories, rising home prices and
increasing mortgage rates. In this business climate, as a mortgage originator or lender, it pays to be a niche player. In the wholesale arena, especially,
there are advantages to specializing in specialty lending.
Banks are driven by their bottom line, but may not be attuned to, or even
able to adjust quickly enough, to meet specific borrower needs. But by
listening to your partners, truly hearing what is happening in the marketplace and the specific challenges being faced, wholesale lenders and
the mortgage originators working with them, have a unique opportunity
to develop and sell products based on those needs.
By committing to aggressive and creative program development, mortgage companies can continue to add value for clients by looking for
ways to become more valuable partners. That can be accomplished, in
particular, by developing niche product offerings that address market
needs — specialized programs that mortgage companies originators can
make available to homebuyers.
Fundamentally, wholesale lending is a relationship business. It’s all about
building a trusting, long-term and high-value relationships between the
clients, lenders and mortgage originators. Providing a robust menu of solutions to address market conditions and specific needs for homebuyers can
help originators succeed.
The lack of affordable homes available for purchase, coupled with a growing demand, has created an opportunity for lenders to help mortgage
originators and homebuyers alike — by expanding expertise in manufactured homes as well as in renovation lending in the government
Continued on Page 60 >>
Laura Brandao is president of American Financial Resources (AFR) Inc. With more than two decades
of experience in the mortgage industry, Brandao launched the wholesale division for AFR in 2007,
became a partner in 2009, and has helped AFR roll out several products based on market demand,
including VA renovation, the AFR advantage downpayment-assistance program and the one-time
close construction-to-permanent FHA, VA, and USDA loans. AFR is one of the leading FHA 203k lenders for sponsored originations in the country and an innovator in the construction-and renovation-lending area. Learn more at
www.afrwholesale.com. Reach Brandao at email@example.com.
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“In the wholesale
there are advantages
to specializing in