DENVER - Foxmoor Industries Ltd. announced that it is doing business as a mortgage banker after financing work in progress by home remodeling contractors for four years.
About a year ago, the company said, management perceived that it already knew how to prepare all of the documentation needed to originate second- mortgage loans - which are the most common way that work-in-progress loans are paid off.
With millions of dollars worth of these loans passing through Foxmoor annually, management realized it was passing up substantial potential profits.
Foxmoor's business plan calls for it to originate $10 million to $12 million worth of mortgages during the fiscal year beginning July 1. The company expects to make 1% to 5.5% on mortgages that pass through its hands. Based on that assumption, it estimates net profits will increase by 50% next fiscal year.
Foxmoor will originate mortgages for its own dealer accounts and also provide warehouse lines to other small mortgage companies.