Mortgage Daily Logo
mortgage news from industry experts

Net Branches Rescued

Net Branches Rescued

American Pacific hires Central Pacific employees

April 11, 2007

By COCO SALAZAR

photo of Coco Salazar
Former employees of failed Central Pacific Mortgage have found a new home.

American Pacific Mortgage Corp. recently signed on a dozen former branches of Central Pacific and picked up over 100 employees in the process, Kurt Reisig, American founder and chief executive, told MortgageDaily.com in an interview Tuesday.

“When these branches found themselves without a lender, we reached out and provided an avenue for these branches and their employees,” Reisig said.

Central Pacific, which Reisig said had about 70 branches, announced it would close doors on Feb. 26, citing that the “inability to fund loans due to the lack of available warehouse lines-of-credit and the lack of cash and capital make it impossible to continue to operate.”

Central’s former employees, mainly branch managers, loan originators and support staff, pushed American’s headcount to over 800 employees, the CEO said. With the branch acquisitions, located in Washington, Oregon and California, American’s branch count is at 134.

In addition to those three states, American’s footprint includes Idaho, Nevada, Arizona and Hawaii. The Roseville, Calif.-based net branch is licensed in 18 states predominantly west of the Rocky Mountains and generated mortgage volume of $2.5 billion last year.

“We are aggressively growing and expanding,” Reisig added. “We’re capitalizing on others dropping. Especially those with a mortgage banking platform. Our mortgage brokering platform has made us pretty attractive to brokers that like net branches but are concerned about the risks net branching companies with a mortgage banking platform” are exposed to.

“Our relatively modest mortgage banking platform has shielded us from the types of risk that are creating troubles in the marketplace,” he added.

Reisig said American Pacific previously operated as a branch of Central Pacific under the name Big Valley Mortgage. In 1997, the branch separated and formed American Pacific. Rather than building business on a mortgage banking model, however, American operates “more as a mortgage brokerage model” — with over 90 percent of its volume brokered to preferred lender relationships with wholesalers.

With Central’s ex-employees, American aims to push this year’s volume back up to 2005’s level of $3.0 billion. For 2008, Reisig has his sights on $3.5 billion.

There are “originators and brokers out there that need price diversity to meet customer needs,” Reisig said. “Our platform as a mortgage broker gives us much more flexibility and adaptability than a mortgage banker model.”

Related:

Central Pacific Shuts Down
The net branch operation run by the former chairman of the Mortgage Bankers Association has run out of money and closed down.


next story

|back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION