GenEquity Mortgage Finds Opportunity Amid Market Turmoil

GenEquity Mortgage, one of Paragon’s newest subsidiaries, is already providing mortgage services to our clients within the United States. While turmoil surrounds the financial markets and in particular the mortgage industry, the timing of starting a new mortgage company may seem strange. However, Derek Bird, Vice President of Mortgage Services at GenEquity, believes there is opportunity in the marketplace. We sat down with Bird to talk about these opportunities and the advantages GenEquity Mortgage can bring to organizations.

PP: In light of the current turmoil in the financial markets, how has this affected GenEquity Mortgage (GEM)?

Bird: The current mortgage market and financial crises has left many lenders scrambling to stay alive. There is no doubt that the real estate and economic environment has created challenges for individuals selling and buying homes. The majority of customers are waiting to sell their old home before they purchase their new home, which is a shift from days past. In addition to the delay in customer’s purchasing their new homes, many customers are finding it more difficult to purchase a new home due to the tighter guidelines and additional scrutiny that has been placed on mortgage originations. One thing is certain, the documentation required for obtaining a mortgage loan has digressed to decades ago. In light of these challenges and realities, GenEquity is positioned extremely well to thrive in the current market because of the strategic direction and quality of its customer base. The market is craving for high-quality loans with strong FICO socres, low loan to value (LTV), borrowers with plenty of reserves, and stable employers, all of which GenEquity is able to produce through its origination platform. GenEquity’s investor base is solid, our financial backing by PGR, and solid credit lines position GenEquity for success in 2009 and beyond.

GenEquity’s strategic direction is to be a solid nationwide lender focused on the relocation mortgage industry and will compete with the relocation channels of Countrywide / Bank of America, Wells Fargo, and Chase. The GenEquity message is powerful due to the multiple lender options available through a single service provider with experience in the relocation arena. To further this growth strategy, GenEquity has recently hired Paula Foster as the Director of Business Development. Paula comes to GenEquity with a wealth of experience in sales and relocation mortgage experience. Her focus will be to grow the client base of GenEquity by showcasing our innovative and powerful solutions to corporate employers and third party relocation companies. 2009 is expected to be a year of growth for GenEquity.

PP: What do you think sets apart GEM from other mortgage companies?

Bird: GenEquity is able to provide a multiple lender platform through a single service provider with expertise in the relocation mortgage arena. In addition, GenEquity has established innovative solutions that will drive convenience and cost savings for customers and clients. One example of these innovative solutions will be the roll-out of a virtual closing experience in a virtually paperless environment. This process will be leveraged through its national title solution that will also drive costs down for GenEquity’s clients and customers by managing the title cost component.