Magazine article American Banker

Florida Vendor Helps Home Builders Offer Mortgages In-House

Magazine article American Banker

Florida Vendor Helps Home Builders Offer Mortgages In-House

Article excerpt

By HALA HABAL

Large home building companies have had in-house mortgage banks for years, but regional and local builders with smaller volumes want in on the action as well, according to a company that outsources such a service.

"Builders are in a significant profit crunch, and having an in-house mortgage company can be a very profitable venture," said Thomas H. Meyer, president of HomeBuilders Financial Network Inc. of Miami Lakes, Fla.

"The automobile industry is a pretty good analogy," he said. "You can walk in, choose a model, and purchase or lease it on the spot through financing right in the showroom. Traditional homebuying and financing has never been that convenient."

Mr. Meyer said builders using his network are increasing their bottom line by 23%.

HomeBuilders consolidates the home sales of its 13 builder members and secures financing from large wholesale lenders such as Chase Manhattan Mortgage, Edison, N.J.; Norwest Mortgage, Des Moines; HomeSide Lending Inc., Jacksonville, Fla.; or Standard Federal, Troy, Mich.

HomeBuilders Financial gets a volume discount and is able to pass along the savings to the home builders. The wholesale lenders are the end purchasers of the loans the builders originate.

HomeBuilders, which has been operating since January 1995, arranged $1 billion of mortgage loans last year, and said its affiliated builders will sell $2.5 billion worth of new homes this year. …

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