Alternative lender Athas Capital Group, Inc. announces remarkable growth in 2011, a result of changing traditional models of private money lending.
February 7, 2012. Since the collapse of the mortgage market in 2007, mortgage professionals and their borrowers have questioned if the fractured industry will ever recover. With Alt-A and subprime products conspicuously absent, borrowers are faced with limited choices if they are unable to qualify for Fannie, Freddie, FHA or VA financing. In lieu of GSE sponsored loans, the other viable option for borrowers is to pursue “hard money” financing. Typical challenges of “hard money” loans include: high interest rates, high fees/points, and the general uncertainty that a loan will actually close/be funded.
The “hard money” subculture has always been an extremely fragmented, regionally focused, “mom and pop” lending option. Furthermore, most “hard money lenders” are really “hard money brokers” who are correspondents for private investors. These private investors are usually wealthy individuals willing to make loans on properties that they would not mind owning. The result is a daisy chain where brokers who are trying to address their borrowers’ financing needs deal with other brokers who are accommodating their private investors’ preferences. The biggest loser in all of this is the consumer/borrower, who is forced to endure an unstructured process with an uncertain outcome to chase a loan product that is often ill suited for their needs. Athas Capital Group, Inc. (“Athas”) has solved these complications and has transformed the typical model resulting in tremendous growth in 2011. In 2011, its loan volume increased year-over-year by 141% based on units and 120% based on the dollar amount funded.
Athas was founded on principles that were designed to specifically address the dysfunctional orientation of the private mortgage market. Kevin O’Shaughnessy, Chief Operating Officer, states that, “We provide our broker and borrower base a streamlined process from initial submission through closing/funding. As an example, we offer detailed rate sheets with pricing matrices tiered by credit buckets for both our residential and commercial products. These rate sheets feed into our comprehensive underwriting guidelines and offer an unprecedented level of transparency and sophistication within the hard money landscape.”
Athas has the distinction of being a true portfolio lender because it manages its own discretionary mortgage fund, eliminating the daisy chain and offering predictability to its broker community. Athas’ lending parameters and structure are determined by its executives, who draw on over 45 years of lending experience. Brian O’Shaughnessy, Chief Executive Officer, says that, “We want every private mortgage application in the country to come across our desk. In order to work towards that goal, we hold our broker base in high regard, offer unparalleled service and execution, and are the low cost option in the private lending space.” Athas financescommercial and residential real estate, including owner occupied properties. O’Shaughnessy adds that “I believe we are the only private lending platform that offers par pricing [zero points] and this adds tremendous benefit to our brokers and borrowers.”
More information about this company is available by visiting http://www.athascapital.com or calling 877-877-1477.