John Robbins and David Kittle, former chairmen of the Mortgage Bankers Association; Gary Acosta, the chief executive officer of the National Association of Hispanic Real Estate Professionals; and Jim Park, former chair of the Asian Real Estate Association of America have founded the independent, member-owned cooperative, based in San Diego.
Members will use “their collective buying power” to lower costs for third-party services, obtain better financial execution on loan originations and implement strategies that cater to the lending needs of diverse borrowers.
The Mortgage Collaborative will also help “a selected group of service providers and mortgage investors” to develop new partnerships with lenders.
Founders aim to bring “a fresh new approach” to how small- to medium-size lenders address business growth opportunities in a market that continues to evolve rapidly and faces compliance challenges, says Robbins.
The collaborative benefits the lenders and their borrowers, he adds. “It enables all mortgage originators to obtain buying power similar to the largest lenders.”
Robbins and Kittle, who led the MBA in 2007 and 2009, respectively, bring decades of experience in all aspects of mortgage operations including origination, capital markets, servicing, compliance and quality control management.
Park and Acosta add housing industry expertise in real estate asset management, working with the government-sponsored enterprises and running organizations that promote lending diversity.
Several factors led these market veterans to establish the new organization.
“The industry is in transition from refinances to purchases,” says Park, and it is now facing “significant operational, capital and compliance challenges, so the collaborative will focus on each of those issues to help members compete more effectively. 2014 will mark a turning point in the originations business.”