The Federal Savings Bank has taken over one of the real estate joint ventures Wells Fargo ended last year, a partnership with New York/Long Island residential brokerage giant Douglas Elliman.
"Our goal is to originate about $3 billion to $5 billion through the relationship, and we believe that will represent about 50% of the next 12 months' volume for the bank," Stephen Calk, the bank's founder, chairman and chief executive officer, told this publication.
Ace Watanasuparp will be the president of the partnership with Douglas Elliman, which inherits the name DE Capital from a previous joint venture the New York metro area residential real estate brokerage had with Wells.
DE Capital will have a personal banker assigned on-site to each Realtor office, Calk says. Bankers will have expertise in mortgage products ranging from superjumbos to first-time homebuyer loans as well as in new condominium development loans and co-op funding, he says.
DE Capital will now operate as a division of The Federal Savings Bank. Watanasuparp also previously ran the five-year partnership with Wells.
Wells Fargo ended eight joint venture mortgage origination platforms it operated with real estate companies last July. These ventures were just 3% of its total mortgage production.
Douglas Elliman primarily operates in the New York metro area but also in Miami and Beverly Hills, Calif. It is the largest player in its space in New York and the fourth largest nationwide, according to Calk.