Castle & Cooke Mortgage, LLC was recently named one of Utah’s 50 fastest growing companies by Utah Business Magazine. Each year, this special edition of the magazine lists the top 50 companies “Fast 50” in order of growth over the past 5 years. Castle & Cooke Mortgage, LLC was awarded 3rd place. In addition, our company was one of the winners selected to have a feature article in the same issue. Please see article below.
At a time when many organizations in the residential mortgage banking industry are struggling to survive, Castle & Cooke Mortgage, LLC is thriving. From 2008-2009 its revenue growth was 265 percent (making an overall, 16,133 percent revenue growth from its inception in 2005). While the national efficiency quotient average is 12:1, meaning every one person can feasibly close 12 loans, Castle & Cooke’s average is 57:1. The company’s astounding success has made Castle & Cooke industry experts, speaking at national conventions on its innovative system and ability to gain market share.
Matthew Pineda, the company’s president, says Castle & Cooke was able to gain a greater market share because of the company’s commitment to service. Its real-time paperless technology and staff (which is the exact same staff as in 2005-no layoffs or added employees) allows the company to streamline the mortgage lending process and guarantee that once a file comes into underwriting, it will fund within three days-something Pineda says no other company is able to do right now. The company smokes the 45-day industry average.
“Guaranteeing three day closings in our industry in this current market is unheard of.” Pineda says. “Our loan officers have taken that commitment to the street and grown their network and books of business with confidence. To have loan officers spreading the word of our guarantee and commitment to service in this challenging economy and handicapped mortgage industry has enabled us to gain market share.”
A few things positioned Castle & Cooke Mortgage for growth during times of trouble. It had full Eagle approval from the U.S. Department of Housing and Urban Development in order to close government insured loans, and it was practiced in doing traditional purchase money business and traditional lending.
“When the liquidity crisis hit the mortgage industry in August of 2007 and sub-prime, alt-A and niche loan programs evaporated, the industry was forced to turn back to its roots of agency and government eligible loans,” says Pineda. “We were positioned perfectly because we had our Eagle and had always done those loans. When the market demanded traditional lending we were able to capitalize on the demand and we did not lose pace with the opportunity the market created.”
A higher demand from borrowers and fewer lending companies meant a challenge for Castle & Cooke Mortgage, as the company tried to keep up. But, Pineda says his company could not detour from its three day commitment to closings. “We leaned on our investor and banking relationships in order to accommodate our commitment to service. The Federal National Mortgage Association and U.S. Bank National Association were vital to our success and enabled us to overcome the capacity challenges that plagued the mortgage industry in 2009.”
As a fourth-year mortgage operation, the company passed $1 billion in 2009, and Pineda says controlled growth is its objective for the next two years. “Our goal is to break the $2 billion mark for funded volume. We are on pace and excited to be in mortgage banking.”
ARTICLE FROM UTAH BUSINESS MAGAZINE: Please see http://www.utahbusiness.com/issues/articles/10165/2010/09/fast_50 for the full September edition of the magazine and references.