Accomplice in Ridgeland Mortgage, Smith Douglas Properties, went public in January and targets price-conscious entry-level and empty-nest homebuyers within the South and Southeast.
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With scarce inventories persevering with to crimp gross sales of current properties in lots of markets, loanDepot is relying on a confirmed technique to spice up its buy mortgage enterprise: Forming joint ventures with homebuilders.
LoanDepot’s newest three way partnership accomplice is Woodstock, Georgia-based Smith Douglas Properties, which targets price-conscious entry-level and empty-nest homebuyers within the Southeast and Southern U.S.
Dan Peña
“Smith Douglas Homes’ approach to the new construction market is perfectly aligned with loanDepot’s commitment to serving the needs of first-time homebuyers,” loanDepot govt Dan Peña mentioned, in a assertion Monday.
As soon as it’s up and working, the plan is for the brand new three way partnership, Ridgeland Mortgage, to function in Atlanta; Houston; Birmingham and Huntsville, Alabama; Charlotte and Raleigh, North Carolina; and Chattanooga and Nashville, Tennessee.
Greg Bennett
“Our partnership with loanDepot allows us to focus on what we do best — delivering incredible value to our customers with high quality homes at an affordable price point — while leveraging loanDepot’s mortgage lending expertise to provide a smooth and seamless home loan process,” Smith Douglas Properties CEO Greg Bennett mentioned in a press release.
Smith Douglas Properties, which raised $173 million in a January preliminary public providing, constructed and bought 2,297 properties final yr, and owned or had choices to construct on almost 13,000 extra heaps, the corporate mentioned in its most up-to-date annual report to traders.
The builder presently works with a steady of most popular lenders within the markets the place it’s lively. In Atlanta, for instance, Smith Douglas Properties works with BankSouth Mortgage, NorthStar Mortgage Advisors and Motion Mortgage.
LoanDepot’s different joint ventures embody NHC Mortgage (with Nationwide HomeCorp), LGI Mortgage Options (with LGI Properties), Henlopen Mortgage (with Schell Brothers), BRP Mortgage (with Brookfield Residential), MTH Mortgage (Meritage Properties), MSC Mortgage (with Michael Saunders & Firm), TRI Pointe Join (with Tri Pointe Properties) and Day 1 Mortgage (with Century 21 Redwood Realty).
In its most up-to-date annual report to traders, loanDepot reported $21 million in internet earnings from its joint ventures in 2023, up 22 p.c from 2022 and almost double the $11.9 million in income its joint ventures generated in 2021.
New properties taking extra market share
Supply: Fannie Mae housing forecast, October 2024.
With elevated mortgage charges making many householders reluctant to place their properties up on the market, Fannie Mae economists count on new house gross sales will develop 7 p.c this yr to 713,000. New properties are projected to make up 15 p.c of 2024 house gross sales, up from 11 p.c in 2022.
LoanDepot’s joint ventures with homebuilders “typically experience their highest level of activity during November and December as home builders focus on completing and selling homes prior to year-end,” the corporate mentioned in its annual report.
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