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