We recently aligned with a new mortgage bank for three reasons: (1) to drastically shorten our closing periods; (2) to offer even lower rates; and (3) to access much better jumbo options.
We have nothing against our former mortgage bank at all, as we simply were not a good fit for their model and we will continue to work closely with them as we close out a pipeline that is now close to $200 million.
WHAT IS JVM?
From a regulator’s perspective, JVM is technically a branch of a mortgage bank.
But, we are unique in the industry b/c we own and control every aspect of our business, including our vast website, our hiring policies, our training program, our Realtor support network, our interest rate offerings, our marketing, our lead generation, our technology suite, our office, our equipment and furniture, our compliance, our management – and everything else.
The only thing we want from a mortgage bank is the underwriting and funding of our loans – as quickly and efficiently as possible.
We have numerous options for funding loans but our sole and only goal is to pursue the option that will allow us to offer the lowest rates and best service.
BROKER OPTION: This is the channel where we are not aligned with any one mortgage bank but can instead submit loans to multiple different “wholesale lenders.” This option allows for significant independence but we lose control over speed and our renowned appraisal process. And – there are virtually no competitive jumbo options in the broker channel. Our jumbo rates are in fact as much as 1/2% lower than anything available in the broker channel right now.
STARTING OUR OWN MORTGAGE BANK: This is another option we weigh often but, at only $80 million to $100 million per month, we simply lack the size to offer the efficiencies that the huge mortgage banks can offer. Mortgage banks also need significant capital to meet the most competitive investors’ demands – particularly on the jumbo front.
WORKING FOR BIG BANK: I have seen a surprisingly large number of successful loan officers pursue this option for the allure of lower rates and the potential leads that naturally flow into a big bank, but those loan officers had to give up 100% of their branding and independence. Big banks are also very suffocating, controlling, and bureaucratic – with closing periods that can sometimes approach 60 days. In addition, big banks often have higher rates outside of jumbo – for Fannie, Freddie, and FHA loans for example.
ALIGNING WITH A LARGE MORTGAGE BANK: This is by far our best option b/c we can maintain 100% of our independence while also taking advantage of the many efficiencies, appraisal control, low rates, speed and jumbo options that many large mortgage banks offer. So significant are the economies of scale of our current mortgage bank that we can literally offer lower rates through them than we could if we had our own mortgage bank.
WHEN WILL WE OFFER 14 DAY CLOSES AGAIN (EVEN FOR JUMBO)?
Our new mortgage bank is renowned for its ability and willingness to not only hire non-stop but to also remain “over-staffed” at all times.
This means that we will soon be able to offer our famous “14 day closes” again.
This will include ALL of our jumbo deals too b/c our new mortgage bank has internal underwriting authority for all of its jumbo investors (unlike our old mortgage bank).
We will be re-launching our fast close options by the end of this month – after we clear our pipeline from our current mortgage bank.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167