In the Money

Lenders: Goldman Sachs, Zillow entering fix-and-flip market is a good thing

“A rising tide lifts all boats”
Over the last few years, the market for financing fix-and-flip projects and single-family rentals has grown significantly. In just the last year or so, massive players like Goldman Sachs, Zillow, Redfin, and others have entered those markets. And one might think that current operators in the fix-and-flip market would view those big companies entering the market as a bad thing, but that’s not the truth.
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Union Home Mortgage acquires Arizona’s Alliance Home Loans

Claims deal will push Union Home’s loan production to more than $4 billion
Ohio-based Union Home Mortgage, a lender with more than 130 branches in 36 states, is set to grow its business after it acquired Alliance Home Loans, a lender based in Phoenix. According to its website, Alliance Home Loans currently has more than 200 employees, including 100 loan originators who are licensed in 27 states. The company states that it funds more than 3,000 loans annually.
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Direct homebuyer OfferPad secures $150 million in funding to power growth

Targeting $1.5 billion in volume in 2018
There certainly appears to be no shortage of money interested in investing in the burgeoning direct homebuyer segment. Opendoor has been raising money hand over fist, a newcomer named Perch launched last week with $30 million in funding, plus Zillow and Redfin both recently expanded into direct buying. The other growing player is OfferPad, which announced this week that it recently secured $150 million in new funding to continue growing its direct buyer business.
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Direct homebuyer Perch raises $30 million to fund expansion

Currently available in San Antonio, Texas
The move towards institutionalizing the home-flipping business has another player: Perch. The company, which is based in New York, launched recently and is currently buying houses directly from homeowners and selling those houses in San Antonio, Texas. The company plans to grow beyond San Antonio and has secured $30 million in funding to power that growth.
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Mutual of Omaha Bank acquiring Synergy One Lending

Deal will allow Mutual of Omaha to expand into reverse mortgages
Mutual of Omaha Bank, the banking arm of insurance giant Mutual of Omaha, is expanding its mortgage platform by acquiring Synergy One Lending, a mortgage lender based in California. One important piece of the deal for Mutual of Omaha: acquiring Synergy One will allow the company to expand into reverse mortgage lending.
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The state of the multifamily market in three top 10 lists

New York, Dallas-Fort Worth, and Los Angeles exhibit big-time lending and building activity
The data on Q1 2018 keeps rolling in, and it can be a little overwhelming. Here is a round up of three top 10 lists that sum up what you need to know about the state of the national multifamily market by the numbers.
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Freddie Mac outstrips Fannie Mae in multifamily guarantee growth by 19 percentage points

Multifamily lending market looks healthy as both companies report growth in their multifamily portfolios
Freddie Mac’s multifamily guarantee portfolio grew 30% year-over-year whereas Fannie Mae’s grew by 11% YoY. According to both companies’ quarterly financial results, Freddie grew its portfolio from $164 billion to $213 billion. Fannie grew its portfolio from $253.3 billion to $281.3 billion. This translates to 152,000 rental units and 154,000 units funded, respectively.
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Quicken Loans reports lending growth in Q1, stays atop the leaderboard for the second consecutive quarter

Quicken points to proprietary tech as a key driver in its growth
Quicken Loans is feeling itself, announcing Wednesday that in the first quarter, for the second consecutive quarter, it has held onto the title of number one loan originator, posting a total of $20.5 billion in loan originations. This is a 5% jump year-over-year, and Quicken points to its proprietary tech as the wind in its sails.
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Redwood Trust inks deal with 5 Arches to grow single-family rental loan business

Buying minority interest in investor-focused originator
Redwood Trust, a real estate investment trust that specializes in buying and securitizing jumbo mortgages, is set to expand into investor-focused loans thanks to a new deal with 5 Arches. Under the deal, Redwood Trust is buying 20% of 5 Arches, an originator and asset manager of investor-focused loans, including loans for single-family rental homes, multifamily bridge, and fix-and-flip residential real estate.
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