Local Mortgage Providers Merge

In February, long-time local mortgage brokerage, __, merged with local mortgage banker, .  The merger brought together the strength, size and platform of Universal with the creativity and local market knowledge of Union First. Located on Braverton Street in Edgewater, the two companies are now one as Universal Mortgage and Finance, Inc.  

A change in mortgage regulations

In the aftermath of the mortgage meltdown, there was a federal tightening of lending regulations. One of the main areas of concern to regulators was home valuation. New laws to contain and control the process (the Home Valuation Code of Conduct or HVCC) stringently separated lenders and realtors from appraisers.  

Unfortunately, there have been unforeseen negative consequences for homeowners and home purchasers as a result of HVCC.  The first is the requirement to have an Appraisal Management Company (AMC) in between the parties, which has created a new industry that has added a layer of cost.

To keep costs in line, appraisers have had to accept a reduction in their fees in order to be given orders through these new companies, or decline to accept appraisal orders that eliminate profit.  

A flood of less-experienced appraisers, or appraisers unfamiliar with local markets have been assigned. As a result, values have declined far more than they should have because consumers are assigned to “discount” appraisers who are unfamiliar with local market trends.

Keeping it local

An ideal scenario would be partnering two lenders—one with strong local knowledge who understands nearby market conditions, and one with strong in-house processing and underwriting.

Universal Mortgage says that their ability to make lending decisions fast, right here in Edgewater makes them such a company because loans no longer have to be sent to Florida, California or Wishkashia, Wisconsin.—giving local residents access to both abilities under one roof.  

Universal Mortgage maintains its own, non-profit appraisal (AMC) division in order to ensure that only the most experienced appraisers are utilized for local markets.  This helps reduce consumer costs and maintains authentic valuations, while remaining compliant with the new federal regulations.

Ron Taylor, is president of the newly merged company and said that, “[o]urs is a dynamic, challenging, yet promising market, in which the quality lender will emerge successful.  The addition of the Union First team, with its distinguished record of professionalism, experience and expertise, will strongly position Universal to maintain its leadership role among those successful lenders.  We are delighted to have them aboard and excited about what we will achieve together.”

Rick Culp, a former account executive for Union First and now one of Universal’s business development recruiters, put it this way, “[n]ow we have the ability to help not only our clients, but also the local community. Our new combined strength allows us to reach out to many disaffected loan officers who need a strong company to represent. We know that many loan officers will be losing their jobs due to the new lending regulations and they are currently considering their options.”

Culp said that “Universal is able to provide an opportunity for professional loan officers who are looking for a company with a solid foundation, multiple loan programs, and an effective lending system, that gives them the ability to concentrate on their clients, instead of wondering how they will make a living. Universal brings stability and professionalism, as well as great loan programs and interest rates to the market, and this can only help to strengthen the local community and bring some sense back into mortgage lending in our area.”

Local resident, Joe Scalone, owner of Just Geek Out computer services, said, “I have been a Union First client for a long time. I was scared to lose them at first. But the whole team is still intact and they now have local underwriting and the strength of Universal Mortgage and Union First together can’t be anything but good for us.”

Universal has full and direct endorsement underwriting authority with FHA, LAPP underwriting authority with VA, direct access to USDA Rural Development loans, construction products as well as typical, conventional and jumbo loan products.  Now, our community has a strong, local mortgage banker to service our area and to provide jobs for experienced, professional loan officers.