Bomac Capital Corp., a Dallas buyer of residential loans mainly from mortgage brokers, will continue to pursue joint-venture lending relationships with real estate brokers and home builders, its chief executive said.

Stan Bomar said that Bomac would not stop with the two joint ventures it has already created.

Bomac is emblematic of a growing group of lenders that are betting on the novel origination plan known as a controlled business arrangement, or CBA.

"A year and a half ago, I wasn't a big believer in the futuristic way of making loans," Mr. Bomar said. He didn't see the idea taking off at lightning speed, he said, "but what I do see is people looking for new ways of doing business."

In a controlled business arrangement, the lender and home builder or real estate brokerage company form an equally owned joint venture. The setup allows for the lender and its partner to share origination profits legally.

Mr. Bomar said his two CBAs have been particularly successful. In one he maintains with a home builder in Houston, 80% of the homebuyers get their loans through the CBA. It was formed six months ago.

"I don't think there have been many success stories so far," he said regarding CBAs.

He said the most important ingredient of a successful CBA is that both parties are working toward the same goal. "It is really like partners," he said. "CBAs work if the two partners are in sync."

Many lenders think that computerized means of originating loans are the keys to CBAs' success. A computerized origination system must be used to keep costs down in order for a CBA to succeed, these lenders argue.

Mr. Bomar disagrees.

"Borrowers want to talk to a warm body, and I don't see that changing," he said. "The value of technology is overpriced today. There are people out there that are willing to spend untold sums of money to be in" a controlled-business arrangement.

Bomac Capital is devising its own computerized loan origination system for its CBAs.

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