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Founded in 2004, Pacific Union Financial is a full-service mortgage lender that has made a very savvy choice – they nurtured and expanded wholesale and correspondent as banks were subtracting those channels from their areas of interest.
In the wake of the 2008 crisis, the correspondent and wholesale segments of the mortgage industry have changed dramatically. Top bank-owned correspondent lenders controlled over three-quarters of the market share in the first half of 2009. By comparison, in the first half of 2016, there were only five banks among the top 10 correspondent lenders and they have combined market share of 38%.
The difference is even more pronounced in the wholesale arena, where there are now only two bank-owned lenders among the top 10.* With fewer banks interested in those channels, independent mortgage companies are seizing the opportunity.
Enter Pacific Union.
One of the new breed of independent mortgage companies, Pacific Union has been quietly building momentum. Long proficient in the government loan space, they have expanded their product offerings to take advantage of the void left behind by conventional banks’ withdrawal from the B2B mortgage space while adding retail branches to increase their reach.
Their approach seems to be working. According to Inside Mortgage Finance, Pacific Union is among the Top 15 Correspondent and Top 25 Wholesale lenders, and they intend to climb higher. When asked how, Senior Executive Vice President Andy Peach discussed a three-point plan.
The first step is to continue to execute their strategy of being a full-service lender with limited overlay lending guidelines. Pacific Union came out of the financial crisis of 2008 clearly focused on this mission, which allows them to serve their clients’ broader needs – while also helping them to make more loans by serving underrepresented borrowers and markets.
The second is to continue to take advantage of their unique team structure. Pacific Union operates in cross-functional teams that offer partners a company-specific sales coordinator contact, a mortgage professional positioned to provide information on loan statuses, underwriting, timing – everything to do with the loan pipeline. This will allow them to continue to provide minimal overlays and personalized service.
The third step is to leverage both conventional and non-agency products, including their proprietary products, thus maintaining their position as one of the private mortgage companies with the widest array of loans.
With an employee force that has grown to more than 1,600 in the past year, Pacific Union is on course to capture a larger share of the correspondent and wholesale markets.
* Source: Top Mortgage Lenders, Correspondent Volume, IMF Data, % Change in Market Share between 1H2015 and 1H2016
