First Priority Financial, Inc., Agrees to Acquire Assets - We are Gaining Ground in the Alameda Home Loan Arena

I have been with First Priority Financial since February of 2007, when I experienced the credit crisis.  It hit me a little earlier when overnight my primary lender shut down and I had gone from have 5 in the pipe to zero overnight.  My brokerage I was with was never going to make it and I knew it, so I took a chance and opened my own branch office.  It has been the best move I have ever made.  The company is like me, ethical, cutting edge, and always finding the best solutions for their people in an ever changing environment.  This was recently released regarding ourr move into the banking platform...

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First Priority Financial IS the Best and Getting Better in OUR New Lending Environment

 under The Buzzz Blog

First Priority Financial, Inc., Agrees to Acquire Assets
of Austin Perry Financial

Acquisition Reverses the Trend of Mortgage Banks buying up Mortgage Brokerages. First Priority Financial, the Nation's largest Mortgage Broker, Expands its Retail Origination Capabilities by Purchasing the Assets of Austin Perry Financial, Their Highest Rated Wholesaler.

December 10, 2009 (Fairfield, CA) First Priority Financial Corporation, a privately held retail mortgage origination firm (1,000 loan originators strong) announces the intended acquisition of Austin Perry Financial Corporation, a privately held residential wholesale mortgage banker based in Santa Rosa, CA. While terms of the agreement were not disclosed, the companies expect to complete the transaction by year end with full funding integration by Q1, 2010.

Long recognized as both a quality and price leader in the retail mortgage origination sector, First Priority Financial was one of few companies surviving the entire meltdown of recent past without posting any losses or going through a single layoff. Similarly, Austin Perry has earned a reputation for being a top quality, customer service-oriented mortgage banker. With a similar approach to the market, quality and cost control, Austin Perry was also among the elite few who remained financially stable while the majority of their geographic peers floundered or barely hung on.

"Our success has always been based on doing what's best for the consumer. This means operating on thin margins and delivering greater funding choices and flexibility than the rest of the industry and offering unprecedented work-flow efficiencies for originators," explained Tim Kearns, CEO of First Priority Financial. "This mindset will never change for us and was also a driving force behind the decision to make this acquisition. The motivation to bank loans in the past was purely profit margin based and not client facing. So we stuck to brokering because it was mathematically best for our clients and loan producers. The changing lending environment makes it prudent to expand and refine banking delivery and continuing to improve upon an already fantastic brokerage channel to best serve our borrowers needs."

When asked about the acquisition, Kearns stated that building a banking division internally is the norm but is too often fraught with growing pains for which the consumer and loan producers would ultimately pay the price. That's why we decided to acquire an existing platform. "Choosing Austin Perry was the easy part," said Kearns. "We have our loan originators rate the lender on every transaction. With over 100,000 transactions funded through virtually every lender in America, we have the most thorough lender rankings in existence and Austin Perry has always been one of the top lenders. Fortunately, they recognized the magnitude of the opportunity combining the two companies represented." Kearns says that the company will take the same low margin, high-efficiency approach to banking that made it the leading broker in the nation. He makes it abundantly clear that he still believes the broker channel is frequently still the best option for the end consumer. For that reason, the company will continue to focus on expanding and refining the brokerage channel in tandem with the internal banking division. This runs counter to the traditional "banker mentality," which discourages loan originators from brokering loans.

"We are excited to begin integrating the Austin Perry and First Priority teams and scaling the funding operation to accommodate the expected increase in volume," said Steve Weaver, President of Austin Perry. "The cultural fit between the two companies is hard to describe, both entities have such a strong commitment to their people and clients; It's not something you see much anymore." "Our goal has never changed. We're creating the perfect mortgage company," concludes Kearns. "One with a well-priced banking platform coupled with a loan officer's ability to broker without bias, utilizing the most efficient paperless workflow solution in the industry. "

The bottom line for this deal came down to funding execution. The combined company will provide more opportunities and advantages borrowers and loan originators. With increased transactional authority and real-time accessibility to underwriters, the process will be streamlined, eliminating unnecessary delays and resulting in higher quality loans. The timing of the acquisition is uncanny. As the housing market hits historical lows, the loans being put on the books are for people who actually have perceived equity at stake each month when they decide whether or not to make their payment. So as the housing economy turns the corner to recovery, you have the makings of another classic American success story; something the real estate industry could really use right now.