Video-conference loan origination continues to heat up, according to Electronic Mortgage Banc of Costa Mesa, Calif.
The small but fast-growing company originates loans solely through interactive computer terminals in real estate broker, home builder, and mobile home offices. This week, it announced a jump of more than 660% in loan originations for the six months ended November 1996, to $14 million.
EMB, a four-year-old company, is projecting $1.5 billion in loan sales for all of 1997.
The company attributes its growth to new loan products, including a 90% Express Loan, which besides requiring no verification of income or assets, boasts a one-page loan application. Borrowers requesting the Express Loan can receive funding 96 hours after application.
EMB says it has received the greatest response from home builders and real estate lenders in the heartland. "Iowa, Nebraska - this is where people are really receptive to doing business" via teleconferencing, the spokesman observed.
Small- to medium-size home builders are a particular target, he noted, in part because larger builders often have their own mortgage companies.
EMB garners most of its business through contacts it makes at trade shows, the spokesman said.
Although other lenders have experimented with placing software origination packages in realty offices without charge, a fee is actually a benefit, an EMB spokesman said. "If it doesn't have a perceived value, the system just doesn't mean as much," he said.
Real estate and home builder offices that are interested in originating loans in-house can lease the EMB software package, or purchase it for $3500. In exchange, they receive a percentage of the origination and rebate fees.