Homepoint seeks to match partner brokers with builders

wholesale lender Attachment point becomes a kind of broker… for mortgage brokers. The Ann Arbor, Michigan-based company has launched a referral program aimed at connecting mortgage brokers with regional homebuilders as well as home buyers.

Homepoint’s “New Build Program” connects homebuilders with commercial construction financing through mortgage brokers in the area, with loans of up to $4 million per unit or 25 million dollars per project. Brokers can help builders secure new loans for the construction of single-family homes, multi-family homes, condos and townhouses.

The program is offered in partnership with a private portfolio lender Tier Capitalwhich originated loans to regional homebuilders.

“There is a tremendous opportunity for builders of small and medium-sized homes across the country to boost the country’s housing supply, which could have a leveling effect on housing prices,” said Brady Yeager, Chairman of Level Capital in a prepared statement. “We strongly believe that mortgage brokers can provide builders with a more efficient process, better technology, market and project risk analysis through our Level Tech platform.”

Homebuilder confidence in April fell for the fourth consecutive month due to continued supply chain disruptions and a slowdown in sales traffic.

Level Capital and Homepoint offer the program to builders as an alternative to loans from credit unions or banks. The rates aren’t quite as cheap, but they can provide financing much faster and with far less red tape, Will Pendleton, senior managing director of wholesale production at Homepoint, said in an interview.

Homepoint’s new program with Level is currently available in Arizona, California, Colorado, Florida, Idaho, Montana, Oregon, Texas, Utah and Washington. The lenders plan to launch in Nevada, New Mexico and North Carolina later this year.

The program is the latest effort to give partner brokers more lending options as term refis disappear and withdrawal refinances move like a roller coaster to higher rates.

“We really lean into finding partnerships that will help differentiate our brokerage partners at a time when they need it — they need to differentiate their value proposition,” Pendleton said. “We are looking for additional products to help reinforce this.”

Homepoint, the country’s third-largest wholesaler, plans to move into non-QM, namely bank statements and investor cash lending. It also evaluates a variety of other products to serve a market that is now heavily focused on purchases.

“We are heavily scouring the market with the ARM market with all of our investor contacts,” Pendleton said. “It’s obviously a big game… plus the home equity lines – obviously some don’t want to leave their two and a half year interest rate. It’s not a big revenue generator for a lender like us, but we’re happy to deliver critical value to our partners.

Homepoint is also launching giant ARMs and considering the possibility of tapping into renovation loans, Pendleton said.

The higher pricing landscape weighed on the profitability of Homepoint’s parent company, Origin point capitalin recent quarters as margins have shrunk.

The company posted a profit of $19.3 million in the fourth quarter, a sequential decline from the $71 million recorded in the third quarter. The company sold $13.1 billion in ginnie mae service fees, which generated nearly $175 million. Homepoint is leaving the Ginnie Mae servicing space and recently announced that it will also be moving all of its mortgage servicing processing work to ServiceMacanother cost-cutting measure.

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