As it ventures into joint partnerships, New American Funding (NAF) aims to reduce risk and lower capital requirements, while also growing its business. This move marks another step in the wholesale lender’s expansion strategy.
On Thursday, NAF, which recently underwent a rebranding, declared its intention to provide several joint venture models, granting partners entry to its infrastructure, processes, and systems.
According to NAF, these partnership models will allow them to reduce the risk that comes with being in the mortgage industry, while also minimizing the typically high capital requirements. Additionally, the models will generate a steady revenue stream and offer greater control over the mortgage process.
NAF stated in its press release that being a privately held company allows them to adapt to changing market conditions without the need to consult with shareholders or investors. This flexibility allows for the development of specialized programs aimed at assisting underserved communities and first-time homebuyers in achieving their goal of homeownership.
NAF’s joint venture collaborators will also have access to its range of resources and tools, such as a lead generation system, a five-year protection promise, a comprehensive product selection that includes loan brokerage capabilities, and other features.
Al Miller, the national director of joint ventures at New American Funding, stated that NAF is seeking to collaborate with the best companies in their respective industries. He also emphasized NAF’s strong reputation in the mortgage sector and noted that while NAF would handle the bulk of the work, partnering with them would help take businesses to new heights.
NAF’s move to enter the joint venture arena is part of its broader strategy to grow its business while minimizing risk and capital requirements. By offering multiple partnership models, NAF aims to provide specialized programs that cater to the needs of underserved communities and first-time homebuyers. Furthermore, its joint venture partners will have access to its extensive resources, tools, and network of professionals, which can help boost their business. Overall, this move marks a significant development in NAF’s growth trajectory and underscores its commitment to innovation and collaboration in the mortgage industry.