Retail growth spurt

Mortgage Banking, May, 2002 by Charlyne H. McWilliams

Loans originated at LaSalle Bank, LaSalle Home Mortgage, Standard Federal Bank and Atlantic Mortgage-- affiliates of ABN AMRO Mortgage Group--are included in the lender's retail numbers, Newman says. These banks are located in three states and employ 120 loan originators.

Newman attributes the relatively low turnover rate among AAMG's loan originators-10 percent to 15 percent--to the company's training, technology support and the opportunities it offers the production staff.

"They will have the opportunity to do more business going into this year," Newman says, because AAMG is expanding its retail efforts by offering new mortgage products as well as increasing its sales force.

In addition to its retail business, ABN AMRO Mortgage Group has a wholesale division fed by strong broker business, Newman says. It also has a national lending center, which includes a call center and its Internet business channel, www.mortgage.com.

ABN AMRO Mortgage Group prevents channel conflict by offering different products through each channel, Newman says. In addition to the different products, he says, AAMG also has an extensive communications network, which allows each division to know what the other is doing at the loan level.

"We pride ourselves in being proactive with communications" among AAMG's channels and by "knowing where the market is going," Newman says.

According to Newman, ABN AMRO Mortgage Group anticipated the decrease in the refinance market. "We decided we wanted to focus on some stable markets and expand the number of products we offer in these markets," Newman says. When AAMG created these new loan products, it did so with profitability in mind--not just to increase production numbers, Newman says.

Along with offering more products, Newman says ABN AMRO Mortgage Group is looking to expand geographically by locating production offices in some East Coast states and by having a centralized production office in Sunrise, Florida.

Principal Residential Mortgage

In 2001, Principal Residential Mortgage Inc., Des Moines, Iowa, originated $2.4 billion in retail loans. The company expects to have the same level of retail originations this year, says Charlotte Catalfo, executive vice president of production. Principal Residential "tried to keep originators focused on regular business beyond refinance, Catalfo says.

"We encouraged our sales staff to take care of their Realtor and builder markets," Catalfo says. These relationships will sustain the lender during the refi lulls, she adds. "We're well-positioned to meet the needs of the market by introducing a new product every 90 days. These products will allow us to compete successfully."

During 2001, Principal Residential's major issue was capacity management, according to Catalfo. She says the company was able to handle increased volume, and not permanently increase its overhead by employing temporary and contract staff.

In addition to maintaining retail production levels in 2002, Principal Residential is looking forward to increasing the number of loan originators it has on the streets. Currently the company has 232 loan originators across the country in 16 mortgage branches, and 60 additional representatives in banks.