A California lender that markets government-insured mortgages to borrowers with credit scores below 640 recently lost more than a hundred loan originators because they didn’t obtain licenses that are now required in the state. But that hasn’t slowed growth plans at the firm, which has moved to a bigger location and expects to add 125 new employees.
A new 68,000-square-foot headquarters in Ontario, Calif., is expected to help First Mortgage Corp. meet its upcoming growth plans.
FMC President Clem Ziroli Jr. explained in a statement that the company has experienced significant growth during the past few years as a result of its ability to offer financing to borrowers with FICO scores lower than 640. The company, which makes loans insured by the Federal Housing Administration, claims that all major lenders won’t approve loans for borrowers with scores less than 640.
“As a traditional mortgage banker, we look at loans subjectively and carry out careful credit analysis,” Ziroli stated. “We don’t look only at FICO scores.”
While FMC employed 464 people as of Dec. 31, 2009, many of the company’s loan originators did not obtain a required mortgage loan originator license by Aug. 1. As a result, headcount recently tumbled to around 330 employees.
“However, some originators have passed their tests and received their license following the Aug. 1 deadline and we have hired those back,” a spokeswoman said. “We expect this trend to continue and we are actively recruiting new originators.
“So we are in a rebuilding stage — though only due to the need to remain compliant.”
In addition, during the next 12 months, the 35-year-old company expects to hire another 125 people. Around three-quarters of the new recruits will be branch personnel, while the other quarter will be support staff.
Originations during 2009 were 6,248 loans for $1.2 billion.
So far this year, FMC has originated 4,634 mortgages for $820 million.
Since launching in 1975, nearly 64,000 loans for $14 billion have been funded by the direct lender.
FMC said it serviced 13,271 loans for $2.209 billion as of Sept. 30, growing from the end of last year when the company serviced 10,321 loans for $1.735 billion.
