An Oklahoma-based mortgage company is selling its own stock to obtain loan production of smaller brokerages.
“The current environment isn’t the best for acquisitions,” said CEO, Ron Hanna. “What we have found is a lot of brokerages wanting to move their production to a [banking] platform… we have great warehouse lines on credit and have no limit to production,” he said.
PSM Holdings, operating through its subsidiary PrimeSource Mortgage Inc., registered as a mortgage licensee last week in California in order to start “boarding” California companies’ loan production on to its own platform, Hanna said.
All the while, companies that join PrimeSource are able to buy the companies’ stock. “This is very attractive to have people join us,” Hanna added.
Hanna estimates 2 to 3 companies they plan to “board” in California which will add 20-40m in mortgage production each month.