GOLD SPONSOR
Constructive Loans RE-INVENTING WHOLESALE LENDING FOR THE RESIDENTIAL INVESTOR LOAN MARKET By Mark Dewyea, Contributing Writer for Originate Report
C The
“Put
a wholesale lending strategy that
Loan (BPL) industry, they primarily
together the parts in their
simplifies lending, reduces overhead,
purchase closed loans, a strategy
proper place and order.”
and
which
onstructus
(Latin):
goal
for
the
Constructive Loans team has been to construct (pun intended) an innovative conduit that provides their clients with simple and efficient access to capital for business purpose mortgage loans. Additionally, the team at Constructive has worked tirelessly to forge productive, longpartners
significant
risks
for their private and conventional
overarching
lasting
mitigates
relationships to
help
with
them
their expand
product offerings and increase their market presence. This unapparelled level of collaboration has allowed Constructive to build a network of partners that continues to grow at a break-neck pace.
lender clients.
predominantly
benefits
larger, more established lenders and brokers. In order to sell a
Originate Report recently had the opportunity to speak with Alex Offutt, Managing Director of the Wholesale Division of Constructive Loans, to gain better insight into the unique qualities that set Constructive apart. “The team at Constructive recognized early on that there was a large constituency that was vastly underserved in the marketplace,” said Offutt. “Many of these smaller to midsized lenders had no other option but to work with slightly larger lenders that had direct access to capital. This
closed loan, a lender must process, underwrite, close, fund, and then sell that loan. This is an operationally and cost intensive endeavor, as you need highly specialized employees to carry out these tasks, and those employees don’t come cheap in this market. Additionally, once closed, there are carrying costs that come with holding a 30-year loan on a balance sheet. It’s also important to recognize the most likely significant risks, the inability to sell a loan and/or requirement to re-purchase a previously sold loan. Remember
'daisy-chain' of capital was (and still
the disastrous events in early 2020
is) cumbersome and costly to the
that left many originators with loans
Constructive’s leadership team has
individual real estate investors who
they were unable to sell and then
leveraged its decades of combined
form the foundation of our industry.”
eventually sold for a significant loss?
revolutionize the private lending
While
Constructive’s
space. Constructive has pioneered
providers in the Business Purpose
multi-industry
12
experience
to there
are
other
capital
approach
is
to
provide all the necessary tools to its
