SALT LAKE CITY, UT--(Marketwire - October 5, 2007) - Mortgage Net Branch News -- (Primary Residential Mortgage, Inc.) -- The subprime mortgage meltdown has left many mortgage originators in need of a source of funds for their borrowers with less than prime credit. Mortgages insured by the Federal Housing Administration are increasingly filling that gap, but getting through government requirements to obtain FHA lender approval remains arduous.
To avoid dealing with these requirements alone, many of the 50,000 displaced mortgage professionals are seeking mortgage net branch opportunities, and several such companies are being created to meet this demand. By operating under the umbrella of a net branch company, originators can take advantage of the parent company's back-end support. Services typically include accounting, marketing, underwriting, shipping, and closing; more importantly, net branch companies often have the skilled professionals, the necessary licensing, and the asset requirements necessary to originate FHA loans.
However, loan officers are finding that these fly-by-night net branch companies, while boasting the ability to originate FHA loans, lack the experience and resources to help them through the process.
"Most of these new mortgage net branch operations do not have the systems or experience to support mortgage originators in a retail branch environment," says Dave Zitting, President and CEO of Primary Residential Mortgage, Inc., which has been a HUD/FHA Direct Endorsement lender since 1998. "We've spent the last 9 years perfecting these systems with the help of over 200 branches nationwide."
In August, Primary Residential Mortgage, Inc. added 3 large branches to its network. The company is continuing to expand its reach, and is in the process of hiring 35 new employees to offer the high level of support demanded by its increasing volume.
ABOUT PRIMARY RESIDENTIAL MORTGAGE, INC.
Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded by Dave Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in approximately 200 Branches in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, Primary Residential Mortgage , Inc. is a privately held, debt-free company that focuses primarily on traditional loan products. Licensed in Arizona, Alabama, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.
http://www.marketwire.com/mw/release.do?id=778104
Sunday, October 14, 2007
Monday, September 17, 2007
WHAT THEY'RE SAYING: PRESIDENT BUSH'S PLAN TO HELP STRUGGLING HOMEOWNERS
Proposal "Focuses Government Resources Where They Are Likely To Do The Most Good," "Will Help Thousands Of Homeowners Help Themselves"
President Bush "Is Offering A Helping Hand To Honest Homeowners Who Got In Over Their Heads"
The Washington Post: "The president's proposal appropriately focuses government resources where they are likely to do the most good: on subprime borrowers who are behind on their payments but have the means to handle modified loans at reasonable terms." (Editorial, "Rescuing Mortgage Holders," The Washington Post, 9/2/07)
New York Daily News: "To give credit where credit is due, President Bush has taken a solid first step to address the mortgage crisis rocking the world economy. Acting in measured, bipartisan fashion, Bush is offering a helping hand to honest homeowners who got in over their heads as he pointedly, and rightly, refuses bailouts for speculators." (Editorial, "Bush Lends A Hand," New York Daily News, 9/1/07)
The Baltimore Sun: "The Bush proposals won't bail anyone out of his or her problems, but they will help thousands of homeowners help themselves. And the president's call to enforce predatory lending laws and strengthen lending practices sends the right message to an industry that needs to re-examine its role in the subprime mortgage debacle." (Editorial, "A Helping Hand," The Baltimore Sun, 9/3/07)
The Boston Globe: "[T]he president was also on target when he sought to extend the reach of the Federal Housing Administration, which insures home mortgages." (Editorial, "Homeowners Come First," The Boston Globe, 9/1/07)
The Atlantic.com's Megan McArdle: "Overall, this seems to me like a pretty good package. It doesn't, as many of the more generous plans do, offer irresponsible borrowers free home equity at the expense of either the lender or the taxpayer. But it does give them a chance to get some breathing space by working out terms with their lender. And it stops the rather horrid practice of taxing people who've had to sell their house for less than the value of the mortgage." (Megan McArdle, "What About This Bush Plan?" The Atlantic.com, 8/31/07)
"FHA Can Now Help Many More Families In Jeopardy Of Losing Their Home"
Pat V. Combs, President, National Association Of Realtors: "The proposed changes will allow more people to refinance with FHA insurance ...with this increased flexibility, FHA can now help many more families in jeopardy of losing their home." (National Association Of Realtors, Press Release, 8/31/07)
Allen Fishbein, Consumer Federation Of America: "This could save Americans who are delinquent on their loans hundreds of dollars a month on their mortgage payments. ...This would open up a significant new channel to at least some borrowers who are seriously delinquent on their loans." (Andrew Ward and Eoin Callan, "Bush Offers Help To Struggling Homeowners," The Financial Times, 8/31/07)
John Dalton, President, Financial Services Roundtable's Housing Policy Council: "[W]e were particularly edified to hear the President call for the modernization of the Federal Housing Administration, which is a Housing Policy Council priority. Modernization of the FHA can play an important role in providing home financing for low and moderate income borrowers." (Housing Policy Council, Press Release, 8/31/07)
John M. Robbins, Chairman, Mortgage Bankers Association: "It is essential that the Federal Housing Administration have the tools and flexibility to adjust its products and programs to meet the evolving needs of borrowers." (Mortgage Bankers Association, Press Release, 8/31/07)
Dave Zitting, CEO, Primary Residential Mortgage, Inc.: "PRMI is elated to hear of President Bush’s newly proposed 'FHA Secure' program. ...We're confident this is a step in the right direction not just for the mortgage community, but more importantly, for borrowers." (Primary Residential Mortgage, Inc., Press Release, 8/31/07)
Cara Heiden, Division President, Wells Fargo Home Mortgage: "Strengthening the Federal Housing Administration provides homeowners with another valuable tool in their pursuit of homeownership options and rightly deserves broad support from the policy-making community." (Wells Fargo, Press Release, 8/31/07)
Marc E. Lackritz, President And CEO, Securities Industry And Financial Markets Association:"We support efforts to keep people in their homes...and are pleased that the administration is taking steps using its existing authority to address these serious issues." (Securities Industry And Financial Markets Association, Press Release, 8/31/07)
Mark Zandi, Economist, Moody's Economy: "[T]he tax initiative could help even lower income homeowners. ...'Enough homeowners could benefit to make a difference,' said Zandi." (Les Christie, "Bush Offers Help To Troubled Homeowners," CNNMoney.com, 8/31/07)
"This Is A Huge Deal"
Bob Walters, Chief Economist, Quicken Loans, Livonia, MI: "Bush's suggested solutions are good news for homeowners and Michigan in particular. 'It will help us a lot,' Walters said." (Susan Tompor, Op-Ed, "A Bit Of Hope In Lending Crisis," Detroit [MI] Free Press, 9/1/07)
Furhad Waquad, President, Michigan Association Of Realtors: "[T]his is a step in the right direction. It needs to be applauded." (Gordon Trowbridge and Deb Price, "Bush Offers Aid As Foreclosures Soar," The Detroit [MI] News, 9/1/07)
David Liguori, American Equity Mortgage, Indianapolis, IN: "We'll be able to put a lot more customers into a better place, a better loan where it's properly structured. ...It's exciting." ("FHA Plan Could Help Hoosiers Behind On Mortgage Payments," The Associated Press, 9/4/07)
Todd Tatum, American Housing Group, Victorville, CA: "Raising the FHA limit will definitely help us out here. ...This is something we have been fighting to get for years." (Michael Rappaport, "Rethinking Mortgages," San Bernardino County [CA] Sun, 9/2/07)
Jessica Cecere, President, Consumer Credit Counseling Service, West Palm Beach, FL: "This is a huge deal. ...What people need is the opportunity to refinance at a decent rate." (Paul Owers, "President Bush Unveils Bailout Plan For Some Mortgage Holders," South Florida Sun-Sentinel, 9/1/07)
Source: Courtesy of the White House
Contact Info:
Dave Zitting
davezitting@primeres.com
President Bush "Is Offering A Helping Hand To Honest Homeowners Who Got In Over Their Heads"
The Washington Post: "The president's proposal appropriately focuses government resources where they are likely to do the most good: on subprime borrowers who are behind on their payments but have the means to handle modified loans at reasonable terms." (Editorial, "Rescuing Mortgage Holders," The Washington Post, 9/2/07)
New York Daily News: "To give credit where credit is due, President Bush has taken a solid first step to address the mortgage crisis rocking the world economy. Acting in measured, bipartisan fashion, Bush is offering a helping hand to honest homeowners who got in over their heads as he pointedly, and rightly, refuses bailouts for speculators." (Editorial, "Bush Lends A Hand," New York Daily News, 9/1/07)
The Baltimore Sun: "The Bush proposals won't bail anyone out of his or her problems, but they will help thousands of homeowners help themselves. And the president's call to enforce predatory lending laws and strengthen lending practices sends the right message to an industry that needs to re-examine its role in the subprime mortgage debacle." (Editorial, "A Helping Hand," The Baltimore Sun, 9/3/07)
The Boston Globe: "[T]he president was also on target when he sought to extend the reach of the Federal Housing Administration, which insures home mortgages." (Editorial, "Homeowners Come First," The Boston Globe, 9/1/07)
The Atlantic.com's Megan McArdle: "Overall, this seems to me like a pretty good package. It doesn't, as many of the more generous plans do, offer irresponsible borrowers free home equity at the expense of either the lender or the taxpayer. But it does give them a chance to get some breathing space by working out terms with their lender. And it stops the rather horrid practice of taxing people who've had to sell their house for less than the value of the mortgage." (Megan McArdle, "What About This Bush Plan?" The Atlantic.com, 8/31/07)
"FHA Can Now Help Many More Families In Jeopardy Of Losing Their Home"
Pat V. Combs, President, National Association Of Realtors: "The proposed changes will allow more people to refinance with FHA insurance ...with this increased flexibility, FHA can now help many more families in jeopardy of losing their home." (National Association Of Realtors, Press Release, 8/31/07)
Allen Fishbein, Consumer Federation Of America: "This could save Americans who are delinquent on their loans hundreds of dollars a month on their mortgage payments. ...This would open up a significant new channel to at least some borrowers who are seriously delinquent on their loans." (Andrew Ward and Eoin Callan, "Bush Offers Help To Struggling Homeowners," The Financial Times, 8/31/07)
John Dalton, President, Financial Services Roundtable's Housing Policy Council: "[W]e were particularly edified to hear the President call for the modernization of the Federal Housing Administration, which is a Housing Policy Council priority. Modernization of the FHA can play an important role in providing home financing for low and moderate income borrowers." (Housing Policy Council, Press Release, 8/31/07)
John M. Robbins, Chairman, Mortgage Bankers Association: "It is essential that the Federal Housing Administration have the tools and flexibility to adjust its products and programs to meet the evolving needs of borrowers." (Mortgage Bankers Association, Press Release, 8/31/07)
Dave Zitting, CEO, Primary Residential Mortgage, Inc.: "PRMI is elated to hear of President Bush’s newly proposed 'FHA Secure' program. ...We're confident this is a step in the right direction not just for the mortgage community, but more importantly, for borrowers." (Primary Residential Mortgage, Inc., Press Release, 8/31/07)
Cara Heiden, Division President, Wells Fargo Home Mortgage: "Strengthening the Federal Housing Administration provides homeowners with another valuable tool in their pursuit of homeownership options and rightly deserves broad support from the policy-making community." (Wells Fargo, Press Release, 8/31/07)
Marc E. Lackritz, President And CEO, Securities Industry And Financial Markets Association:"We support efforts to keep people in their homes...and are pleased that the administration is taking steps using its existing authority to address these serious issues." (Securities Industry And Financial Markets Association, Press Release, 8/31/07)
Mark Zandi, Economist, Moody's Economy: "[T]he tax initiative could help even lower income homeowners. ...'Enough homeowners could benefit to make a difference,' said Zandi." (Les Christie, "Bush Offers Help To Troubled Homeowners," CNNMoney.com, 8/31/07)
"This Is A Huge Deal"
Bob Walters, Chief Economist, Quicken Loans, Livonia, MI: "Bush's suggested solutions are good news for homeowners and Michigan in particular. 'It will help us a lot,' Walters said." (Susan Tompor, Op-Ed, "A Bit Of Hope In Lending Crisis," Detroit [MI] Free Press, 9/1/07)
Furhad Waquad, President, Michigan Association Of Realtors: "[T]his is a step in the right direction. It needs to be applauded." (Gordon Trowbridge and Deb Price, "Bush Offers Aid As Foreclosures Soar," The Detroit [MI] News, 9/1/07)
David Liguori, American Equity Mortgage, Indianapolis, IN: "We'll be able to put a lot more customers into a better place, a better loan where it's properly structured. ...It's exciting." ("FHA Plan Could Help Hoosiers Behind On Mortgage Payments," The Associated Press, 9/4/07)
Todd Tatum, American Housing Group, Victorville, CA: "Raising the FHA limit will definitely help us out here. ...This is something we have been fighting to get for years." (Michael Rappaport, "Rethinking Mortgages," San Bernardino County [CA] Sun, 9/2/07)
Jessica Cecere, President, Consumer Credit Counseling Service, West Palm Beach, FL: "This is a huge deal. ...What people need is the opportunity to refinance at a decent rate." (Paul Owers, "President Bush Unveils Bailout Plan For Some Mortgage Holders," South Florida Sun-Sentinel, 9/1/07)
Source: Courtesy of the White House
Contact Info:
Dave Zitting
davezitting@primeres.com
PRMI Expands in Midst of Shrinking Mortgage Market
SALT LAKE CITY, UT--(Marketwire - September 7, 2007) - Since late 2006, over 140 U.S. lenders have closed their doors for business. As the liquidity crisis continues to create challenges for many mortgage lenders, Primary Residential Mortgage, Inc. (PRMI) has been rapidly expanding its operations. With over 40,000 mortgage professionals losing jobs since the beginning of the year, PRMI has responded with aggressive recruiting. Distribution of new branch applications has increased 98%, from 279 in August 2006 to 554 in August 2007, and the company has announced plans to add over 35 employees to the Business Development Team at their corporate offices.
"PRMI's business model has insulated the company from current market challenges," says Dave Zitting, CEO and President of PRMI. "First, PRMI made the decision years ago to distance itself from the sub-prime market. While we offer loans that fit every type of borrower, our core strength has been in traditional prime products. And second, while many lenders have been caught without investors for their loans, PRMI utilizes a model whereby all of our loans have a guaranteed investor -- before the loans are funded. These have proved to be wise decisions and have allowed us to be in the strong position we are today."
PRMI sells all loans via best efforts flow execution (each loan is committed up-front prior to funding) and to date there have been only two units slated for re-direct. This execution model has allowed all other loan volume to execute normally. Other companies have suffered as a consequence of selling loans via sophisticated secondary market models that create significant issues with mortgages held for sell that are ultimately not purchased by investors.
In addition, PRMI strictly follows the specific investor guidelines and has only booked loans on its warehouse lines that are properly approved and committed for sell. This gives PRMI the ability to fit any loans with issues into other investors. The company has taken the additional step of sequestering all product sells that do not fit standard agency product to a select group of investors.
"I am watching the markets and PRMI's potential risks closely," says Dave Zitting. "As of today there are zero issues that would cause PRMI to fail. We are in direct contact with our investors, banks, and warehouse facilities to ensure we are conducting business in ways that they are comfortable with. To date they have assured us that we are in excellent shape."
ABOUT US
Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded by Dave Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in approximately 200 Branches in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, PRMI is a privately held, debt-free company that focuses primarily on traditional loan products.
Contact Info:
Dave Zitting
davezitting@primeres.com
"PRMI's business model has insulated the company from current market challenges," says Dave Zitting, CEO and President of PRMI. "First, PRMI made the decision years ago to distance itself from the sub-prime market. While we offer loans that fit every type of borrower, our core strength has been in traditional prime products. And second, while many lenders have been caught without investors for their loans, PRMI utilizes a model whereby all of our loans have a guaranteed investor -- before the loans are funded. These have proved to be wise decisions and have allowed us to be in the strong position we are today."
PRMI sells all loans via best efforts flow execution (each loan is committed up-front prior to funding) and to date there have been only two units slated for re-direct. This execution model has allowed all other loan volume to execute normally. Other companies have suffered as a consequence of selling loans via sophisticated secondary market models that create significant issues with mortgages held for sell that are ultimately not purchased by investors.
In addition, PRMI strictly follows the specific investor guidelines and has only booked loans on its warehouse lines that are properly approved and committed for sell. This gives PRMI the ability to fit any loans with issues into other investors. The company has taken the additional step of sequestering all product sells that do not fit standard agency product to a select group of investors.
"I am watching the markets and PRMI's potential risks closely," says Dave Zitting. "As of today there are zero issues that would cause PRMI to fail. We are in direct contact with our investors, banks, and warehouse facilities to ensure we are conducting business in ways that they are comfortable with. To date they have assured us that we are in excellent shape."
ABOUT US
Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded by Dave Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in approximately 200 Branches in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, PRMI is a privately held, debt-free company that focuses primarily on traditional loan products.
Contact Info:
Dave Zitting
davezitting@primeres.com
Thursday, September 13, 2007
"FHA Volume Surging" -Dave Zitting, President and CEO Primary Resiential Mortgage, Inc.
SALT LAKE CITY, UT – AUGUST 31, 2007 – Mirroring market-wide demand, Primary Residential Mortgage, Inc. (PRMI) has seen a 71% increase from January to August of this year in federally insured Federal Housing Administration loans. Having been a HUD/FHA Direct Endorsement lender since 1998, the company is using their extensive experience to help borrowers utilize FHA loans.
As recently as 2003, PRMI closed 5721 FHA loans, and the company expects volume to surge again as investors continue to tighten guidelines and eliminate other comparable products. As options for first-time home buyers and the credit-impaired decrease, borrowers are once again turning to FHA hoping to find relief. FHA loans offer several benefits, including low down payments, low closing costs, and easy credit qualifying.
“PRMI has a long history of serving lower- to moderate-income households with FHA loans,” says David Zitting, CEO and President of PRMI. “Options are shrinking in other product channels, and we see this as an attractive option for our customers.”
In spite of the FHA program’s attractive features, several factors have made it less competitive in recent years. Though FHA loans boast low down payments, they have suffered from low limits and cumbersome paperwork. In response, private lenders stepped in with no down-payment programs and efficient automatic underwriting systems. But with private sector options dwindling due to market conditions, FHA is once again in demand, and the industry has been awaiting a modernization of the program to make it even more viable.
“We’ve been hoping to see an adjustment in guidelines, and PRMI is elated to hear of President Bush’s newly proposed ‘FHA Secure’ program,” says Zitting. “We’re confident this is a step in the right direction not just for the mortgage community, but more importantly, for borrowers. Our Board of Directors has met to discuss the positive implications this has and our intention is to support the lending community in the newly proposed program.”
The president’s proposal is intended to help stem the tide of foreclosures by allowing borrowers to refinance through FHA at more favorable rates. If approved by the House and Senate, FHA guidelines will be subject to the following changes:
1. Additional relaxed credit and mortgage-late guidelines
2. Increase in FHA loan limits
3. Increased loan-to-value limits for both Refinance and Purchase transactions
PRMI is actively encouraging its Branches nationwide to utilize these loans in the appropriate scenarios, and if they are not already, to meet company requirements to become an FHA-approved Branch.
ABOUT US
Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded
---MORE---
by David Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in approximately 200 Branches in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, PRMI is a privately-held, debt-free company that focuses primarily on traditional loan products.
CONTACT INFORMATION
David Zitting, President and CEO, Primary Residential Mortgage Inc.
press@primeres.com
Related Links
www.branchpartner.com/davezitting
http://www.primeres.com/
http://www.marketwire.com/mw/release.do?id=767753
http://www.webwire.com/ViewPressRel.asp?aId=46291http://www.msnbc.msn.com/id/20648913/
http://www.webwire.com/ViewPressRel.asp?aId=46501
As recently as 2003, PRMI closed 5721 FHA loans, and the company expects volume to surge again as investors continue to tighten guidelines and eliminate other comparable products. As options for first-time home buyers and the credit-impaired decrease, borrowers are once again turning to FHA hoping to find relief. FHA loans offer several benefits, including low down payments, low closing costs, and easy credit qualifying.
“PRMI has a long history of serving lower- to moderate-income households with FHA loans,” says David Zitting, CEO and President of PRMI. “Options are shrinking in other product channels, and we see this as an attractive option for our customers.”
In spite of the FHA program’s attractive features, several factors have made it less competitive in recent years. Though FHA loans boast low down payments, they have suffered from low limits and cumbersome paperwork. In response, private lenders stepped in with no down-payment programs and efficient automatic underwriting systems. But with private sector options dwindling due to market conditions, FHA is once again in demand, and the industry has been awaiting a modernization of the program to make it even more viable.
“We’ve been hoping to see an adjustment in guidelines, and PRMI is elated to hear of President Bush’s newly proposed ‘FHA Secure’ program,” says Zitting. “We’re confident this is a step in the right direction not just for the mortgage community, but more importantly, for borrowers. Our Board of Directors has met to discuss the positive implications this has and our intention is to support the lending community in the newly proposed program.”
The president’s proposal is intended to help stem the tide of foreclosures by allowing borrowers to refinance through FHA at more favorable rates. If approved by the House and Senate, FHA guidelines will be subject to the following changes:
1. Additional relaxed credit and mortgage-late guidelines
2. Increase in FHA loan limits
3. Increased loan-to-value limits for both Refinance and Purchase transactions
PRMI is actively encouraging its Branches nationwide to utilize these loans in the appropriate scenarios, and if they are not already, to meet company requirements to become an FHA-approved Branch.
ABOUT US
Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded
---MORE---
by David Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in approximately 200 Branches in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, PRMI is a privately-held, debt-free company that focuses primarily on traditional loan products.
CONTACT INFORMATION
David Zitting, President and CEO, Primary Residential Mortgage Inc.
press@primeres.com
Related Links
www.branchpartner.com/davezitting
http://www.primeres.com/
http://www.marketwire.com/mw/release.do?id=767753
http://www.webwire.com/ViewPressRel.asp?aId=46291http://www.msnbc.msn.com/id/20648913/
http://www.webwire.com/ViewPressRel.asp?aId=46501
Subscribe to:
Posts (Atom)