LRG Capital Group Launches Residential Mortgage Lending Arm to Fill Void Left by Those Exiting Industry Due to Increased Federal Regulations
February 17, 2010, Larkspur, California—LRG Capital Group, a global investment, banking and advisory boutique, announces today that it has launched a consumer-direct residential mortgage lending subsidiary, LRG Mortgage Inc. (LRG Mortgage), to fill a void in the industry as increasing regulations have left many lenders unable to stay in business.
“Lending regulations have tightened and will continue to do so reducing the risks of making bad loans that could come back to haunt mortgage lenders but raising the bar much higher in terms of financial strength needed to stay in business,” said Lawrence “Larry” Goldfarb, CEO of LRG Capital Group, “In the face of a shrinking pool of financially healthy mortgage credit providers, LRG Mortgage is primed to forge ahead as demand for quality mortgage services increase and many companies will be forced to exit the industry or be acquired.”
LRG Mortgage will only make loans in which borrower qualifications and property values securing the loans are fully documented and proven. Since mortgage industry regulators have announced significant increases in the amount of capital that mortgage companies will need to have on hand in order to protect against potential future loan defaults, LRG Mortgage’s affiliation with LRG Capital Group will allow it to fulfill these requirements, unlike many other small mortgage companies.
LRG Mortgage is pursuing a “retail” strategy by going directly to borrowers. “We will serve our customers with loan agents working in our own call center, and through loan agents we will hire to serve local communities,” said Jeff Glass, VP of Marketing and Sales. “We feel both approaches are needed to fully address the market because some borrowers need face to face contact with an agent and others prefer the efficiency of web, phone and email interaction to get a loan.”
LRG Mortgage is aiming at a segment of the market that puts a premium on fast, efficient service, self-service mortgage education and price discovery. Those types of customers will find getting a home loan with LRG Mortgage is faster, easier and cheaper than with any other lender. “We will diligently monitor our performance during each of the many steps involved in making home loans to ensure the best possible service,” said Ken Polowitz, VP of Operations. “We also are investing heavily in the most up-to-date lending technology so that we have the best available tools to provide highly efficient top of the line service to our customers.”
LRG Mortgage will offer three main types of financing: conventional loans, jumbo loans, and loans insured by government agencies, including FHA, VA and USDA (rural housing).
Initially the company will originate home loans in California, expanding to additional states and nationwide. The company is in the process of applying for various government approvals, as well as establishing relationships with short-term credit providers that will enable LRG Mortgage to act as a direct lender. Approvals and lines of credit will be obtained before the end of the year and once they are in place, the company will begin underwriting and funding its own loans.
LRG Capital Group
LRG Capital Group (www.lrgcapital.com) is a global investment, banking and advisory boutique that focuses on public and private companies in the technology, life sciences, hospitality, real estate and entertainment sectors. Founded by Lawrence Goldfarb, the firm provides capital via private equity, commercial loans and structured debt financing, and guides and advises clients on mergers and acquisitions, corporate finance and other strategic alternatives. Based in San Francisco with offices in New York, LRG Capital excels at relationship-focused guidance and financing.
To learn more about LRG Mortgage visit www.lrgmortgage.com.
Contact Information:
LRG Mortgage, Inc.
Ken Polowitz, VP, Operations
Email: kpolowitz@lrgmortgage.com
Jeff Glass, VP, Marketing and Sales
Email: jglass@lrgmortgage.com
LRG Capital Group
Alexis Banducci, Marketing Manager
Email: abanducci@lrgcap.com
