Investment bank Gleacher & Co. Inc.’s new Descap Mortgage Funding subsidiary has made plans for—among other things—eventual cautious expansion of its loan product offerings beyond current, standard agency/government lending efforts.
“Our intention is to expand our product mix,” Descap president Mark Pappas told this publication, noting that it would only do so in the context of extremely safe, high-quality loans.
The company, which—as previously reported—recently bought Marlborough, Mass.-based lender ClearPoint Funding, has had roughly 80% wholesale/20% retail originations. At press time last month it was slated to officially transfer its related capital markets group to New York from Marlborough.
Phillip Kukafa, who has served as chief lending officer and—like Pappas—once worked for MortgageIT, was slated at press time to head the cap markets unit—pending regulatory approval. Pappas would not comment on the company’s secondary market disposition strategy.
When asked about its parameters for loan brokers who partner with the company, Pappas would say only that there are “specific guidelines for partners that we would like to work with” and that the company would be open to inquiries about them.
As far as what the company can offer originators that differentiates it from other lenders, Pappas said, “We feel that through changes that have occurred, the concept of service is a lost art” in the industry, and Descap is working to change that.
He said it plans to do so through its experienced mortgage staff and technology, including a nationwide help desk that is available to support partners and account executives.
When asked about changing rules for compensation that have been a hot topic among originators, Pappas said he did not want to comment outside of noting that his company’s compensation plan is an innovative and unique one that rewards quality.
Previous owners of ClearPoint before Descap have included a U.S. affiliate of the United Kingdom’s Virgin brand, Virgin Money. That company lends in 12 states and Washington, D.C.
As previously reported, Descap plans to build on the regional wholesale and retail originator and create a national platform in both channels.
Pappas is one of the founders of MortgageIT, a nonconforming originator that Wall Street firm Deutsche Bank purchased in early 2007. Pappas left the company six months before its sale. According to the Mortgage Industry Directory, an ON affiliate, MortgageIT was the 27th largest originator and 18th largest wholesaler in 2006.
Pappas told this publication late last year he hopes to create a similar culture at Descap by taking some of the best practices from MortgageIT and adapting them to the current market. Last month, he reconfirmed earlier statements indicating he plans to grow Descap on a de novo basis as well as potentially through more acquisitions.
