How has Amera Mortgage Corporation navigated the tumultuous mortgage lending environment
in 2008 to position itself for the future?
During 2008, many large and small mortgage lending firms disappeared from the residential
lending landscape. Amera Mortgage confronted disruptions in the market, including
product scope, pricing, valuation and interim financing availability by narrowing
our business focus to our core lending competencies, liquidity and expense controls.
A conscious effort was made as early as December 2007 to eliminate nonessential
expenses and preserve human capital in our critical support areas. This effort,
combined with renegotiation of our warehouse funding line early in 2008, enabled
us to bolster cash and loan loss reserves throughout the year and contribute a net
profit to the bottom line. Our lending focus shifted back to our core strength of
originating conforming conventional and government loans.
A concerted effort was made during 2008 to sponsor and educate Capitol Bancorp Limited
affiliated banks with regard to Federal Housing Administration and Veterans Administration
residential lending with great results. The focus on this type of lending has positioned
both Amera and Capitol’s affiliated banks to engage in new customer relationships
quickly as interest rates have dropped and the secondary market for these products
has reliquified heading into 2009.
We look forward to expanding our relationships within the Capitol Bancorp system
through increased education of lenders and bank directors. This training will help
increase the opportunities for additional profit available to affiliates in 2009.
— Mark A. Janssen, CEO