Most retail lenders are desperately looking for productive loan originators to cover the losses incurred in 2022. The majority of lenders easily lost half of the volume they started in 2021 last year. Very popular.
California based retailer JVM Lending plans to strengthen its business this year, but is doing the exact opposite. The lender operates under a “no loan officer” model, with all 45 employees licensed and delegated to specific roles to complete loans.
After the 2008 mortgage crash, JVM let go of all loan originators and instead trained its employees to target the jumbo loan market in the San Francisco Bay Area.
“During the 2007-2009 meltdown, we had loan officers. so came back to us. housing wire.
In the revamped mode, business developers build relationships and generate leads with realtors, and client advisors generate leads from borrowers. Mortgage analysts are responsible for pre-approving buyers, while contract desk employees receive incoming contracts and send them to the underwriting team. A closing specialist handles the loan and takes over all communication with escrow, realtors and buyers to close the loan.
“In the Bay Area where we are located, we are primarily in the jumbo market and loans are very complex[…]we still have a niche of expertise in a complex environment,” Voorhees said. increase.
JVM, a lender with a turnover of $624.6 million in 2022, lost 70% of its jumbo loan business, down 51% from $1.28 billion a year earlier, largely due to aggressive price cuts by banks. rice field.
“They cut us 75 basis points on all products and suddenly they started losing borrowers (…) About a month ago banks started pushing interest rates higher, probably because their cost of funds increased,” Voorhees said. said.
This year, JVM Lending plans to diversify its business to close investment property loans rather than relying heavily on jumbo loans. The lender’s goal is to get half of its production from investment properties in 2023, up from 10% today to 15%.
JVM, which has also had a market presence in Texas since 2017, has identified investment property opportunities and plans to take advantage of the growing market.
“For the past five years, we have been focused on Texas, not on investment real estate agents,” said Heejin Kim, co-founder of JVM. We actively pursue our investor niche and meet very specific real estate agents.Our virtual assistants and team are looking for real estate agents who are focused on investment properties. ”
JVM Lending is optimistic about the idea of hitting its $1 billion revenue target in 2023 based on the increase in request leads since December, which was up 10% compared to the same period in 2021.
“In late January we had a surge in business that we haven’t seen in years. One of the best lock-ins this week alone. [which] we haven’t had one in a long time. I didn’t expect it to happen so soon, so I’m very optimistic at this point,” he said Voorhees.
