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Home123 Corporation Signs On As Client Of TotalMove
By James Comtois
Although the purchase market in the mortgage industry is growing, many large lenders are inexperienced with the sector. Also, in the purchase market, customers can often get cut off from the lender, usually because a real estate agent refers them to a new lender.
In order to integrate a real estate and moving services program with its purchase mortgage products, an Irvine, Calif.-based home mortgage originator that specializes in subprime loans has enlisted the services of a Shelton, Conn.-based consumer real estate and moving services company.
Home123 Corporation, the retail mortgage subsidiary of New Century Financial Corporation, has signed on as the latest corporate mortgage client of TotalMove. Now, TotalMove will help Home123 integrate a real estate and moving services program with its purchase mortgage products.
"We take consumers through the entire real estate process. We refer them to a real estate agent, we help them transfer utilities, help get a home warranty, van line and moving services, home securities [and] help them find certified home inspectors. We...ensure that the [customers are] staying with Home123 throughout the process," said Claire Fennessey, vice president of marketing at TotalMove.
"Home123 recognized that the concept that we provide. We help them close many more loans. The consumer gets this free service getting a home warranty, utility connections and disconnections, van line services, so Home123 recognized it was a great fit for them," said Ms. Fennessey.
She added that Home123, like many large lenders, also signed on as TotalMove's client because it needed assistance with the growing purchase market. "The market has really been changing. Refi loans as a percentage of the total market has dropped dramatically and purchase has grown more and more. A lot of companies don't know how to manage purchase mortgages."
Home123 offers a range of mortgage products, including prime and subprime loans, and provides an array of services across the credit spectrum. The company's platform places loan origination, processing, underwriting and closing all at the local level.
Ms. Fennessey pointed out that another service that TotalMove can offer Home123 is to connect potential homebuyers to correct neighborhoods in a long-distance move. "If someone's moving long-distance, we can offer neighborhood reports, school reports and connect them with local real estate agents. It's a matching service. We'll make sure that the real estate agent has like-interests with and understands the needs of the homebuyer."
Additionally, TotalMove has rules about using real estate agents when a customer uses TotalMove's services through Home123, alleviating the problem of lenders getting disconnected from its customers. "If they're not working with a real estate agent, [customers] can get disintermediated from the lender, usually from the real estate agent. When we refer a customer to a real estate agent, that agent cannot refer the customer to another lender."
The Cross Country Group, General Catalysts Partners and Geolo Investment Group finance TotalMove, which offers real estate agent selection, mortgage, insurance, moving and van line services and utility transfers to home sellers and buyers.
Home123 is TotalMove's 10th corporate mortgage client. Since signing on Home123, TotalMove has launched IndyMac, SunTrust Mortgage and EverHome Mortgage as clients.
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