UK Knight Plans to Conquer US Wholesale Lending

“At a time when others are exiting the mortgage space, leaving consumers with fewer financing options, Virgin Money is jumping in with its wholesale mortgage program,” Branson, who is founder and chairman of parent Virgin Group, said in the statement.Companies like Chase, Colonial National Mortgage and LIME Financial Services Ltd. have recently abandoned their wholesale channels, while PMI Insurance Co. recently told its wholesale lender customers that it would stop issuing policies on third-party originations. Virgin, which acquired inter-family lender CircleLending in 2007, said it has already signed up 150 mortgage brokers and obtained licensing in 35 states.

Virgin photo of Richard Branson

A Virgin spokeswoman declined to comment about originations or lending capacity, but she did indicate headcount at the mortgage unit is 100.By comparison, Wells Fargo Home Mortgage employed around 4,000 people before it acquired Wachovia Corp. on Dec. 31 — though last month it did temporarily suspend third-party jumbo programs and raise credit score requirements on third-party government originations.

Running the mortgage broker operation will be executives who previously worked at Goldman Sachs, New Century Mortgage and CitiMortgage, according to the press release.

Program offerings include FHA-insured loans and loans targeted at “creditworthy borrowers.” The Waltham, Mass.-based firm said it provides on-site technology training and enables paperless underwriting, direct uploading of loan origination system files and real-time status updates and rate quotes.

“Virgin Money sees a growing service gap in the mortgage industry, which we plan to close and own,” Virgin Money founder and Chief Executive Officer Asheesh Advani proclaimed in the announcement. “We’re not there just to sell a loan.

“We support brokers through to the closing.”