Nov. 2015-Opportunity Knocks

TheMReport — News and strategies for the evolving mortgage marketplace.

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Th e M Rep o RT | 23 Feature funny," says Casey Fleming, author of The Loan Guide: How to Get the Best Possible Mortgage, and a mortgage advisor at C2 Financial Corp., in San Jose, California. "People think it's either prime or non-prime. In reality there are really quite a lot of choices in between." Competitors in California include Angel Oak Funding and Woodland Hills Mortgage Corp., Fleming says. For non-prime mortgages, he works with Bank of the Internet, another Pacific Union competitor. Despite mounting competition, Stone sees plenty of opportunity for growth. "Three years from now I think the mix between purchase to refinance will be different," he says. "Today, while Pacific Union has a strong focus on purchase business, industry wide, refinance transactions comprise a large percentage of total mortgage origination volume. Three years from now, I think we all hope that there is a greater supply of housing and there are more borrowers who can qualify to be first-time home buyers." In addition, Stone sees more private money entering the market. "There is already a movement underway. You are starting to see private money enter the marketplace," he says. "For the last seven years it's predominately been either direct or implicitly implied government-backed loans, and I definitely think within three years non-government, institutional money will absorb a meaningful percentage of the secondary mortgage market, and that, in turn, will create opportunities for first-time home buyers. Guidelines are still, historically speaking, stringent, but some credit loosening will occur to help first-time homebuyers get into homes. Non QM mortgages will represent a larger percentage and that means a greater opportunity for homebuyers." No matter the changes that arise, Stone plans to keep the core values that built his company. "We have been a consistent player in the industry. We don't pull out on products or channels on a whim. We stay the path." ElainE PofEldt is a freelance writer based in the Greater New York City area. She has contributed to Fortune, Money, CNBC, Inc. and many other business publications. In her free time she enjoys taekwondo, running and hanging out with her four children. Pacific Union Financial's Rick Skogg, President and CEO; Evan Stone, Founder; and Madison Simm, Senior Executive Vice President and CFO.

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