The rats are trying to sell their ship before it sinks. I'm seeing a lot of these.
Available for Acquisition
Northeast Mortgage Bank
Offered Exclusively by W.J. Bradley Company
Telephone: (303) 302-9990 or email to: Northeast_Bank@wjbradley.com
Based in Massachusetts, the Company is a residential mortgage banker with 124 employees operating through eight retail branch offices located throughout Massachusetts, Connecticut, and Vermont and a recently formed retail branch in California. The Company holds direct mortgage license authority in eight states (CA, CT, FL, MA, ME, NH, RI, VT), has gained approval from the U.S. Department of Housing and Urban Development (“HUD”) as a Title II Non-supervised Correspondent Mortgagee (“Mini Eagle”), and has correspondent level authority from the Veterans Administration (“VA”).
The following information summarizes certain key attributes of the Company:
Production: In 2003, the Company originated 7,270 residential mortgage loans at an average loan size of $213,913 for total origination volume of $1.56 billion, $1.53 billion of which was banked. Through September 30, 2004, the Company has originated 3,003 residential mortgage loans at an average loan size of $217,000 for a nine-month total loan origination volume of $652 million, $624 million of which was banked.
Financial: In 2003, the Company generated gross revenues of $29.8 million, EBITDA of $7,342,887, and net income of $6,702,200. Through June 30, 2004, the Company has generated gross revenues of $11.2 million, EBITDA of $3,122,116, and net income of $2,771,388. As of June 30, 2004, the Company reported total assets of $26.7 million ($8 million in cash or cash equivalents), total liabilities of $16.5 million, and total shareholders equity of $10.3 million.
Product Source: The Company’s business model revolves around referrals from client and professional relationships that make up more than 97% of all Company originations.
Product Type: In 2003, 98% of the Company’s banked production was conventional product (88% fixed rate, 12% ARM) and 1.5% was FHA. In 2003, the weighted average coupon on its $1.53 billion in banked loans was 5.58%. Through September 30, 2004, 97% of the Company’s production was conventional (70% fixed rate, 29% ARM) and 1.9% was FHA. Through September 30, 2004, the weighted average coupon on the Company’s $624 million in banked loans was 5.47%.
Warehouse Facilities: The Company maintains $15 million and $25 million warehouse facilities with Washington Mutual and HSBC, respectively.
Secondary: The Company sells its loans to its investors on best-efforts, flow basis and began to delivering loans as AOT in September 2004. In 2003, the Company’s weighted average sale price on banked loans was 101.67. Through September 30, 2004, the Company’s weighted average sale price was 101.71.
Deal Summary: This Company has a 17 year track record of success in a highly desirable market. The Company could easily realize greater revenues/earnings with a more sophisticated secondary marketing platform. The Seller is amenable to staying on board for a reasonable amount of time to effect a seamless transition.
Offered Exclusively by W.J. Bradley Company
Telephone: (303) 302-9990 or email to: Northeast_Bank@wjbradley.com
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