The head of Amalgamated Bank’s new “full-service” home mortgage division said the timing was right for the New York-based financial institution to start its operation, with low interest rates, house prices becoming reasonable and sales beginning to pick up.
Edward A. Bolmarcich has been hired as senior vice president and director of residential lending. Previously, he was vice president of residential and consumer lending at Brooklyn Federal Savings Bank.
Previously, the bank had outsourced mortgage originations to a third-party provider.
Amalgamated will originate loans, not only on one-to-four family properties, but also condominiums and co-ops. Home equity loans and lines of credit are available as well as financing for vacation and investment properties.
Initially Amalgamated will put all of its production into portfolio, although it eventually plans to sell the 30-year fixed rate loans.
It is retaining servicing rights on its production, Bolmarcich said. In this way, the borrowers can go to any local branch and make their monthly payment.
As an introductory offer, Amalgamated is offering those who apply for and have their mortgages approved in July and August a refund of the cost of the home appraisal at closing.
Consumers can apply for loans online or through the bank’s 20 retail offices in New York. Those that apply online can receive a conditional approval in as little as 20 minutes. Amalgamated is New York State-chartered commercial bank owned by the trade union Workers United.
In April, the bank received a $100 million capital investment from The Yucaipa Cos. LLC and WL Ross & Co. LLC. One of things Amalgamated said the new capital would allow for was the creation of the mortgage division.
The mortgage website site opened on July 1 and in the first week received 270 visits, a sign Bolmarcich called encouraging.
There is what the company called a “step-by-step application” form which is driven by a series of questions. Bolmarcich noted that if the borrower stops filling out the application midstream, an Amalgamated loan officer is able to contact them.
That personal touch will be seen throughout the loan process, he added, saying customers would always know a person from Amalgamated is going to be involved as they apply.
The customer’s feelings towards their lender can go a long way, he said. Consumers tell their friends of their experiences, both good and bad. Providing a positive environment is the best word-of-mouth marketing.
Loan officers will work out of the mortgage unit’s headquarters, but will be available to meet with customers at local branches.
Amalgamated is recruiting not only loan officers, but also back office staff such as processors and underwriters.
Besides its New York offices, Amalgamated has branches in Las Vegas, Lyndhurst, N.J.; Pasadena, Calif.; and Washington. Plans are to eventually originate mortgages at those locations as well.
