PrimeLending adds joint venture with Dallas homebuilder
PrimeLending is entering into an affiliated business arrangement with Dallas homebuilder Grand Homes that is expected to start producing loans in February.
Financial details of the arrangement were not disclosed, other than PrimeLending Ventures Management will own the majority interest in the new company, which will be called Grand Home Loans.
This isn't the first joint venture for PrimeLending, a PlainsCapital company that is also based in Dallas. It formed a joint venture with Mutual of Omaha Bank in April 2016.
Besides offering purchase loans, Grand Home Loans will originate renovation and refinance products, a press release said.
There have been a number of affiliated business arrangements between lenders and homebuilders in the past. KB Home currently has a joint venture with Stearns Lending called KBHS Home Loans. That relationship replaced one it had with Nationstar.
But with no sign to the end of the inventory shortage, these joint ventures for lenders, not just with homebuilders but with real estate brokerages as well, help them to maximize market share.
Having an in-house mortgage company can help get a loan through the approval process quicker.
Grand Home Loans is in the process of filling leadership positions as well hiring loan originators and operations staff.
"We're extremely excited about our relationship with Grand Homes," said Mike Matthews, PrimeLending's senior vice president of joint venture sales and support in a press release.
"With our combined efforts, we're confident we will be able to assemble a talented team of home loan experts dedicated to helping customers achieve their homeownership goals."