PrimeLending, the mortgage arm of PlainsCapital Bank, launched a new home lending joint venture alongside a Texas homebuilder to serve buyers of newly constructed properties in
Kindred Home Loans, the business created by Southlake, Texas-based builder Kindred Homes, and PrimeLending Ventures Management will provide mortgage services to buyers of new properties built by its namesake parent company in the Dallas/Fort Worth and San Antonio communities. Ronald Faulkner will serve as managing director of the new home loan operation.
"This partnership allows Kindred Homes to provide our home buyers with a hassle-free loan process to match each borrower with the right loan package to fit their needs," said Carol Horton, chief marketing officer at Kindred Homes, in a press release.
Founded in 2009, Kindred Homes is currently led by construction industry veterans whose background includes leadership experience at D.R. Horton and Beazer Homes, among other companies.
In its third-quarter earnings call, Hilltop Holdings, the parent company of PrimeLending, reported a loss of $23.1 million in mortgage operations, with loan production falling by over 46% year-over-year. The company has also joined
As market conditions worsen, lenders have turned to joint ventures with realtors or builders to drum up business.
In early November, loanDepot partnered with homebuilding company National HomeCorp to form NHC Mortgage, while other lenders have made deals with realtors and brokers in establishing new companies.
The mortgage industry overall has seen loan applications come in at their slowest pace in decades, with volumes now down by 64% on an annual basis, according to the most
Meanwhile, homebuilders also find themselves in the bleakest environment in years, based on surveys conducted by the National Association of Home Builders and Wells Fargo. Industry sentiment tracking sales, traffic and future outlook
The NAHB/Wells Fargo index came in lower this month despite a pick-up in
The sudden pullback in home purchases this year has led some builders to slash prices and provide other incentives as they try to move inventory. Lennar, among other companies, has gone as far as opening up more sales to single-family rental