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| In its transition from a mortgage broker to a mortgage banker, American Residential Funding Inc. announced expansion plans that include the addition of mortgage banking positions and loan originators.
The Costa Mesa, Calif.-based company, reportedly operating through 70 offices in 25 states, plans to add 20-30 new mortgage banking jobs this year, president and CEO Vincent Rinehart told MortgageDaily.com. In addition, another 100-200 loan agents are expected to be on board by the end of 2005. “We are accelerating our transition to more profitable mortgage banking from principally mortgage brokerage,” Rinehart said in an announcement, “because the average revenue of $2,500 from a mortgage banking loan is significantly higher than $450 from a brokerage loan.” American Residential, which reports funding $1.4 billion annually, expects to see production from its banking unit grow from about 10% of current originations to 20% – 30% by year’s end, Rinehart added, while production from the affinity segment is expected to increase by $10 million to $20 million monthly. The company plans to take its new wholesale operation, which will reportedly provide approved mortgage brokers with Alt-A programs from Impac Funding Corp., from startup to $20 million a month by the end of the year, Rinehart noted. “Couple this rapid growth in volume with the higher profit margins of mortgage banking, we are looking forward to a year of virtually explosive, but managed growth,” Rinehart said. |
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Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com and MortgageChronicle.com. email:Â SamGarcia@MortgageDaily.com |
