Cooperative Promises Leverage for Small Players

The name of the new organization is The Mortgage Collaborative, according to a news release issued on Tuesday.

Members of the San Diego-based cooperative will utilize their using their collective buying power to lower third-party service costs and improve execution on loan originations.

Among four founding members of The Mortgage Collaborative is former Mortgage Bankers Association chairman John Robbins. In addition to his time as MBA chairman in 2007, Robbins reportedly has decades of mortgage experience.

David Kittle, who in 2009 also served as MBA chairman and also reportedly has decades of experience, is among the four founders.

The other two founding members are National Association of Hispanic Real Estate Professionals Chief Executive Officer Gary Acosta and former Asian Real Estate Association of America chairman Jim Park.

Robbins noted in the announcement that the organization levels the playing field for all mortgage originators.

“We are bringing a fresh new approach to helping these lenders address the opportunities of a market that is evolving rapidly while mitigating the new business and compliance challenges that our industry is facing,” Robbins said in the statement, adding, “The Mortgage Collaborative will be an independent, un-biased business advocate for its members.”

Park explained that the industry transition from refinances to purchase poses significant operational, capital and compliance challenges — prompting the four executives to establish the cooperative.

The new entity will compete with another mortgage cooperative, LendersOne.

The Mortgage Collaborative is expected to announce its founding member roster by the end of the year. New members can join in January.

“We are looking for the ones who are in the business for the long run, committed to expanding its reach into all segments of the market, focused on quality standards and practices, and who desire advantageous relationships with the best services providers,” Robbins said in the announcement. “Collectively, our production volume, business capabilities and access to capital will rival the largest banks, but with members offering locally dedicated, very high-touch service for borrowers.”