This is a significantly updated version of the original article.
Icon Residential Lenders has become a Veterans Affairs approved lender, adding this product to its activities as an approved Federal Housing Administration lender.
Icon is two-and-one-half years old and is based in Irvine, Calif. It is a subsidiary of Grand Bank NA, Hamilton, N.J.
Icon chief operating officer Philip Giunta explained that in today's market the borrower's ability to save for a down payment remains an issue. VA is one of the few programs left that allows for 100% financing for those who are eligible (namely current or past armed services members).
He said Icon had two objectives in adding VA: growing its purchase business and to take advantage of VA's "very good" rate reduction program, which allows current VA borrowers at minimal cost to reduce their payment.
Icon expects to do more than $250 million in VA loans through the wholesale channel this year.
The decision to seek VA approval is part of the strategy to concentrate more on the purchase market, Giunta said. The company's current business is split nearly evenly between FHA and conventional. It is just starting to market the VA offerings to mortgage brokers.
"As the refinances of 2010 started to go away with the rising interest environment, as a company we started looking out to the future," and decided to reposition itself and focus on "purchase-oriented products," he said.
Finally, the company has unveiled a wholesale customer service program it calls IFirst, with the goal of helping to build the relationship between newly signed up mortgage brokers and Icon's internal operations team.
Sometimes it is tough for brokers to work with a new wholesale investor, Giunta said, as each wholesaler has their own ways of doing things.
When a new account brings in its first couple of loans, at various touch points in the process, someone from Icon (usually the department managers) will contact the mortgage broker for feedback. Giunta will then take that feedback and use it to help improve the process for the broker.
"If we can help bridge the gap on those first loans to get them over the learning curve, we feel that we are building better relationships with our partners than we would than if we didn't address them up front," he said. Icon is looking to deliver the best experience to its customers and keep those new brokers from falling out.
