Roseville, Calif.-based American Pacific Mortgage, a mortgage net branching company, has formed new investor partnerships intended to significantly expand its mortgage banking platform. In addition to increasing its warehouse capacity, the company has added Flagstar Bank to its list of correspondent relationships.
American Pacific Mortgage says that it anticipated the current market decline and secured its business model by adapting its mortgage banking platform and lowering its risk tolerance in autumn of 2006.
American Pacific Mortgage's key investors perform most of its underwriting and drawing services, and the company then funds loans via its own warehouse line. According to the firm, this platform serves to reduce overall risk and expense, while increasing the company's stability and competitive edge.