An FHA mortgage lender based in New York has launched a wholesale lending division and is adding employees.
The company, Mid-Island Mortgage Corp., announced Wednesday that it launched a new corporate wholesale division. The unit focuses solely on loans insured by the Federal Housing Administration.
"The goal of this new division is to provide sound, sober lending to an industry that has seen many of its revenue sources dry up," the Westbury, N.Y.-based company said in the statement.
Mid-Island has been around since 1959 and was approved by the U.S. Department of Housing and Urban Development to make FHA loans in 1960, a spokesman said today in a statement to MortgageDaily.com. The firm claims to be "New York's longest established mortgage banker."
Unlike other FHA wholesalers that require minimum credit scores of 580, Mid-Island said it has no minimum credit score and considers loans of all credit quality. Assets, credit and the secured property are all evaluated.
"We have used a common sense approach to underwriting for the past 50 years," the statement said. "Getting to the bottom of the borrowers repayment ability is something we specialize in. Sometimes this means taking extra steps to ensure we make a quality loan."
While the company wouldn't disclose its 2007 originations, it did say this year's production is expected to exceed last year's by 75 percent.
Mid-Island noted it is approved as a seller servicer with Fannie Mae and Ginnie Mae. Its servicing portfolio has grown 26 percent since December, and it retains mortgage servicing rights on 95 percent of the loans it originates.
Mid-Island has hired 88 employees during the past 12 month, bringing its current headcount to 120. Around 25 "heavy hitters" were hired from firms including Countrywide, New Century and GE Capital for its new wholesale operation.
Over the next 12 months, the lender expects to hire another 100 employees.
Mid-Island said it is licensed in 12 East Coast states.