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Mortgage lenders and real estate investment firms this month entered tight housing markets in the Midwest and the Northwest to better reach prospective homebuyers, despite a challenging mortgage market. <\/p>\n
While many lenders laid off some of their staff<\/a> to cut costs, others continue opening offices to capitalize on demand from homebuyers. Among them are Geneva Financial<\/strong>, a mortgage lender headquartered in Arizona, which opened a branch location in Chicago, and New Western<\/strong>, a real estate investment firm, which also launched its first office in Chicago, marking its expansion with its 43rd office location in its 19th state.<\/p>\n Led by Irma DeLoen, Geneva Financial\u2019s Chicago branch will offer products including conventional and government loans, such as loans from the Federal Housing Administration <\/strong>(FHA), Veterans Affairs <\/strong>and U.S. Department of Agriculture <\/strong>(USDA).\u00a0<\/p>\n Geneva Financial, founded in 2007 by Aaron VanTrojen, has more than 130 branch locations in 46 states, according to the firm.<\/p>\n Chicago\u2019s housing market started out hot in 2022. About 1,820 homes were sold in the city in January alone, a 7.2% increase from the same time a year ago, according to Compass.<\/strong> Nationally, there was a year over decrease of 2.3% during the same time.\u00a0<\/p>\n \u201cThe spring market is already off to a strong start, particularly for single-family homes, with a 33.5% increase year over year for properties under contract, indicating that demand in the city remains strong,\u201d said Elizabeth Anne Stribling-Kivlan, Compass\u2019 senior managing director.<\/p>\n The expansion comes amid a surge in mortgage rates and declining loan origination volume. Purchase mortgage rates<\/a> last week averaged 5.1%, according to the latest Freddie Mac <\/strong>PMMS. The average rate on a 30-year fixed purchase mortgage rate was 2.95% in the same period a year ago. The\u00a0Mortgage Bankers Association<\/strong>\u00a0expects loan origination volume to drop to about $2.5 trillion in 2022, down significantly from last year’s $4 trillion.<\/p>\n But that hasn’t been a deterrent for all firms.<\/p>\n New Western, which specializes in distressed residential investment properties, aims to revitalize $543 million in residential properties in the Chicago market over the next five years. The company estimates there are about three million “aged properties” in the Chicago area alone, with almost 88% of them built before 2001.\u00a0<\/p>\n \u201cProviding affordable housing, especially in large markets like Chicago, is vital,\u201d said Kurt Carlton, co-founder and president of New Western. When we help bring distressed properties back to the market, it\u2019s up to 31% less expensive than a new construction home.\u201d <\/p>\n New Western calls itself \u201cthe largest private source of investment properties in the country,\u201d connecting more than 100,000 local investors looking to rehab houses with sellers. Since its establishment in 2008, the firm said it has bought and sold about $12 billion in residential real estate.<\/p>\n Planet Home Lending<\/strong>, a mortgage lender and servicer, also has a new team in Portland, Oregon, where it will focus on borrowers looking to work with homebuilders. Headed by sales managers Tim Hattan and Tom Bond, as well as loan officer Dalton Clark, the team has expertise in construction lending, which can help buyers determine whether a construction loan will be a viable option.\u00a0<\/p>\n \u201cPlanet is in a unique position because there are very few non-depository lenders offering a construction product,\u201d Hattan said. \u201cThat is only one of the great things I think Planet brings to the area that were not here before. We plan to open other offices in Salem, Eugene, Medford and the Bend\/Redmond area and believe they will have a positive effect in the communities we want to serve.\u201d<\/p>\n Oregon ranked ninth in the nation for highest median home value this year, at $312,200, according to World Populations Review<\/strong>. Hawaii had the highest median home value at $587,700, followed by Washington, D.C. at $568,400 and California at $475,900.\u00a0<\/p>\n Planet Home Lending\u2019s Oregon branch will provide conventional government loans as well as bridge loans that focus on bridging the gap between buying and selling a home, the company said.\u00a0<\/p>\n The firm also said its personal digital mortgage assistance program, Skymore by Planet Home Lending, will allow consumers to apply for a home loan via their mobile advice. Borrowers and real estate agents can track the loan progress and submit paperwork electronically.\u00a0\u00a0<\/p>\n Planet Home Lending delivers home loans backed by Fannie Mae<\/strong>, Freddie Mac,<\/strong> VA, FHA and USDA in 47 states, Washington, D.C. and Puerto Rico, according to the firm.\u00a0<\/p>\n Panorama Mortgage Group<\/strong>, a mortgage company headquartered in Nevada, added full-service mortgage lender Rely Home Loans<\/strong>, based in Utah, to the group\u2019s umbrella of brands.<\/p>\n Rely Home Loans has plans to expand into Florida and Arizona. PMG, a firm that has more than five brands, will get new leadership as Rely Home Loans president Manfret Roesner takes the helm.\u00a0<\/p>\n Earlier this year PMG added full-service lenders Prosperity Mortgage<\/strong> and Vision Mortgage Group.<\/strong> In 2019, PMG added two brands, one of which was Legacy Home Loans<\/strong>, which focuses on increasing the Black homeownership rate in America.\u00a0<\/p>\n The post Mortgage lenders expand footprint despite challenging conditions<\/a> appeared first on HousingWire<\/a>.<\/p>\n