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Residential Mortgage Services Originates Company Record $5 Billion in Mortgage Loans in 2019

Purchase-focused residential lender continues to attract high-performing loan officers and experienced operations team members

SOUTH PORTLAND, Maine (January 22, 2020) – Residential Mortgage Services Inc. (RMS), a leading independent retail, purchase-focused mortgage lender, serving primarily the Northeast, Mid-Atlantic and Eastern Seaboard markets, today announced the company generated record mortgage loan volume of $5 billion in 2019, a 27.4% increase compared to 2018, when RMS originated $3.9 billion.

“We are excited to have reached the $5 billion origination growth milestone,” said James Seely, President and Chief Executive Officer of RMS. “More importantly, we are extremely proud of the continued commitment and dedication of all our team members, who are the driving force behind our culture of collaboration, industry-leading customer experience and our company’s overall success. In 2020, we will remain focused on further optimizing our strong origination performance by adding high-quality loan officers, who are committed to both RMS and their personal goals, and operational professionals who are passionate about delivering a frictionless origination experience for our customers.”

2019 Highlights

  • Generated record origination volume of $5 billion compared to $3.9 billion in 2018.
  • Closed more than 19,500 loans, an increase of 19% over 2018.
  • Purchase loans represented 73% of total volume, significantly higher than industry averages.
  • Average production per loan officer was $18.4 million, significantly above industry averages.
  • Customer satisfaction ratings continue to surpass industry benchmarks. 
  • #1 Purchase Money Lender in Maine and New Hampshire and #3 Purchase Money Lender in Massachusetts for full-year 2019; acknowledged as a top 100 lender for VA loans in 2019.
  • Opened three new branch locations in North Carolina and South Carolina; currently over 84 total branch locations.
  • Expanded to more than 275 loan officers and approximately 750 employees.
  • Added license in South Carolina; currently licensed in 23 states and the District of Columbia, with brick and mortar retail branch offices throughout 14 states.

Over the years, James Seely has transformed RMS into a leading retail mortgage lender, attracting an experienced leadership team and private equity capital to help drive the company’s significant growth. With a model that combines state-of-the-art technology and high-touch client service, RMS has in place an efficient and effective origination process and a scalable retail origination platform to support the success of our loan officers. At RMS, loan officers are supported by a fully integrated operations team that is committed to the highest level of customer service and delivering value to customers throughout the mortgage process.

“Our operational infrastructure and experienced team have been key to RMS’s success,” said Robin Hawley, Senior Vice President of Business Operations of RMS. “By working hand-in-hand with our loan officers, RMS’s operational team helps to deliver unparalleled customer service every day. We will continue to invest in our operational infrastructure to ensure the best people, technology and processes are in place to support our loan officers as they guide customers quickly and responsibly through the mortgage process and provide the right mortgage solutions to support customer needs.”

About Residential Mortgage Services

Residential Mortgage Services, headquartered in South Portland, Maine, was founded in 1991. Currently, RMS employs more than 750 employees companywide, with approximately 275 loan officers and is a licensed lender in 23 states and the District of Columbia. RMS offers a wide range of mortgage products including conventional purchase and refinance home loans, as well as VA, FHA, USDA-RD and many state-sponsored loan programs. For more information on RMS visit the company’s website at www.rmsmortgage.com.


Helpful Tips

Ways to get ahead of the spring housing market

Top tips for landing a house in an ultra competitive market

You know what they say: The early bird gets the worm. The same goes for the real estate market. Given the ongoing shortage of houses - particularly those that are reasonably priced, such as starter homes - those who vigilantly keep track of what's percolating among newly available properties tend to be in the best position to buy their dream home, assuming they've been prequalified for a mortgage.

Just about everyone knows the housing market really comes to life when the flowers are back in bloom and hope "springs" eternal. Did you know it is also wise to keep an eye out in the dead of winter? A recent study from ATTOM Data Solutions found some of the biggest discounts across the U.S. are between December and February.

No one knows exactly how spring will pan out in terms of buyer activity and property availability, but an uptick in housing starts suggests competition will be white hot. According to the most recent statistics available from the Department of Housing and Urban Development, housing starts nationwide in November  rose to a seasonally adjusted annual rate of 1.3 million units, up more than 3% from  one year ago. Additionally, among single-family dwellings specifically, the number reached 938,000, a healthy 2.4% rate of growth.

National Association of Home Builders Chief Economist Robert Dietz noted in December that property development in 2019 started off slowly, but finished strong.

"Since the rebound in housing took hold earlier this year, single-family starts have posted a steady improvement in the pace of construction," Dietz explained.

This is particularly true in several regions of the country, as single-family and multi-unit starts jumped nearly 7.5% in the South and almost 9% in the West, the Commerce Department reported.

The pluses and minuses of more inventory

An uptick in supply is a double-edged sword. On one side, more inventory equals a greater amount of potential places to buy, something that would-be buyers haven't had much of in recent years, as supply levels have been limited for quite some time. This is particularly true for families operating on a budget.

But on the other side, growth in volume also brings more competition, especially in springtime, which is hands-down the busiest time of year for both sellers as well as buyers. More competition means a greater chance that your picture-perfect home ends up claimed by someone else who got to it first or made an offer the seller couldn't refuse.

If buying a new place tops your to-do list in 2020 and you want to improve your odds of landing the house you'll come to call your own, here are a few ways you can put yourself in the best position to succeed in an ultra-competitive housing marketplace:

Get prequalified

It's been said before in this space, but you can never hear it often enough: Prequalification is extraordinarily important when it comes to improving your odds of becoming a homeowner.

This status provides certain assurances to a seller, by indicating you have the financial capability to close a deal, usually within a certain price range. While prequalification doesn't meet the precise definition of loan approval, it can help the seller make a more informed decision about your intentions and seriousness of your bid. It can give you an upper hand on your competition, since some people opt not to pursue prequalification in order to save time. In reality, such a letter saves time and hassle, and may be the deciding factor if the competition doesn't have one. Talk to your lender about what you need to do to get one, but at the very least, you'll be asked to provide details about your income, in terms of salary as well as available funds.

Save up for a sizeable down payment

Of course, the main reason people pursue a mortgage is it allows them to come up with a large sum of money immediately, which is then paid down over time. Most loans, however, require a down payment, meaning a certain percentage of the house's list price. Generally speaking, down payments typically range between 3.5% and 20%, although the average runs between 3% and 5%, according to the National Association of Realtors.

If at all possible, try to save up as much money as you can to put toward the down payment. Aside from enabling you to borrow less - which can help you spend less in interest by paying off the loan principal - the size of the down payment may be something the seller takes into account when assessing one offer over another. Simple ways of saving include setting up an account specifically for the down payment and contributing a certain percentage of your paycheck each pay period. 

Work with the experts

Mobile apps and online mortgage calculators, which weren't always available, have revolutionized the homebuying process by making it faster and simpler than ever before. One thing that hasn't changed is the importance of surrounding yourself with professionals in the real estate industry. From loan officers to a real estate agent, the more trusted resources you have available to you, the greater your odds are of being in the right place at the right time when it comes to finding and buying the house you want.

Have a back-up plan

The Rolling Stones sang it best: You can't always get what you want. No matter how hard you try or how early you are inquiring about a house that goes up for sale, there's no silver bullet to buying your dream home when competition is fierce.

That's why it's important to have a fall back if Plan A doesn't pan out. What was it about the house that you liked the most? Was it the price that was right or was it the house itself, meaning its physical makeup or location? Understanding what made your dream house special can provide you with the context your team can use to search for a house that may be even better than the one that got away.

Don't let an intense housing market deter you from pursuing your homeownership goals. Residential Mortgage Services can help you achieve them. Contact us to learn more.


Understanding Mortgages

Is an FHA 203k loan for you?

Whether you're looking to make some modest updates in the bathroom, or a major overhaul of a kitchen in severe need of modernization, home renovation allows you to put your own personal stamp on your home. In a way, the assembly process is akin to Play-doh - you can shape it, mold it and recreate it in any number of ways, all guided by creativity, imagination and skilled handiwork.

If only the cost of a home makeover was in the same range. Depending on the material used and the magnitude of the restoration project, home renovations can cost tens of thousands of dollars, an amount that few families have readily available.

That's where an FHA 203k loan can make sense. You may have heard of this mortgage offering before and wondered what it was all about. Well, wonder no more. Here are more details about this loan product and how you can use it to design your new house into the dream home you've always wanted.

What is an FHA 203k loan?

When you're in the market to purchase a home but would like to also do some rehab work in the process, an FHA 203k mortgage may be just the product that can help. Backed by the Federal Housing Administration, this loan variety has been around for well over 30 years, but has received renewed interest recently - since the early 2000s - due to the popularity of television programs like "Fixer Upper," "Flip or Flop" and "Property Brothers." In these shows, the hosts may participate in the physical labor portion of rehabbing an existing home or document what the process is like with a different couple in each episode. Viewers get to witness just how beautiful a home can be when you have the resources to make the desired adjustments and seek to replicate what they've seen on TV.

What these home improvement shows don't typically detail, however, is how the projects are actually paid for. While there are a variety of mortgage products that can make sense for home renovation, an FHA 203k loan is among the most popular, particularly among new buyers by allowing them to buy and restore a house with a mortgage that's rolled into one.

What are the qualifications needed for an FHA 203k loan?

Applying for such a mortgage is a fairly straightforward process and requires the type of documents that you would need for most other home loans, These include two years' worth of tax documents, Social Security information, pay stubs from your employer that corroborate how much you earn, a copy of your credit report and a bank statement that details the funds you have available. This paperwork is needed, of course, to ensure you have the financial capability to borrow money that will pay for the home and accompanying renovation work.

Those who are new to the housing hunt often assume that they need to come up with a large down payment in order to buy their house. Given that FHA 203k loans are often more extensive than a standard VA mortgage or USDA-RD mortgage, you may think a 20% down payment is mandatory. It isn't. In fact, you can pay as little as 3.5% down and still be approved.

It's difficult to say with precision the kinds of qualifications you will need in order to get the go-ahead, largely because each applicant is different, as are the plans in place for renovating a property. Generally speaking, though, your credit score should be higher than 500 and you'll need to be current with your other major expenses. For instance, if you're delinquent on any federal tax debt, this could complicate your eligibility. You also need to be a U.S. citizen or an eligible non-citizen and not experienced foreclosure on any loans within the past three years.

Are there any other requirements?

Just as your financial standing entails a formal review process, the same can be said for the project you'd like to have completed. For example, FHA 203k mortgages break down into two categories: limited and standard. The latter of these - standard - requires that the renovation cost no less than $5,000 and that it be overseen by a consultant who's affiliated with the Department of Housing and Urban Development. A limited loan is typically used for larger projects and provides for financing up to $35,000.

There are also general rules that serve as guidelines for what FHA 203(k) loans can be used to pay for aside from the property itself. Here are a few bullet point examples of what the funds can go toward, as detailed by NerdWallet:

  • Install or replace flooring, be it hardwood or wall-to-wall carpeting.

  • Repair, restore or overhaul ceiling or the roof.

  • Introduce new plumbing, electrical or sewer systems.

  • Enhance aesthetic appeal to improve physical features and resale value.

  • Increase energy-efficiency with green-friendly installations and appliances.

  • Most exterior modifications involving landscaping.

However, some major renovation projects may be outside of an FHA 203k loan's purview. For example, if you want to install an in-ground pool, this mortgage product typically doesn't allow for such a project. Similarly, outdoor kitchens usually aren't eligible. It never hurts to ask, though, so speaking to your lender is the best way to know for sure.

What is the maximum amount you can borrow?

FHA 203k loans vary when it comes to how much the mortgage will actually pay for in order to purchase and restore a property. That will depend on where you live as well as your financial capabilities and where your would-be property is. For example, in some counties, the maximum loan amount is cut off at $314,827, but in others, it may be as high as $726,525. Again, you'll want to talk to your loan officer to find out for sure.

Things to keep in mind

There are many working parts to an FHA 203k loan. In addition to your mortgage provider and the party you're actually buying the property from, you're also dealing with the company that will be in charge of the renovation project itself. It can get confusing. Here are a few key elements to remember to keep everything straight.

Need to hire licensed contractor - Generally speaking, you can't be the one who is making the home improvements. A trained and officially licensed contractor needs to do the labor. It's always best to leave fixes to the experts, especially since the updates are designed to make the home more valuable.

Project must be finished within a prescribed period - Another advantage to hiring a professional is timeliness. Your lender will work out a schedule for when the project will begin and conclude, but most require it to be finished within six months. 

Must use property as a primary residence - FHA 203k mortgages are designed exclusively for those who are upgrading a house that they will live in, so flippers and other real estate investors may have to seek a different loan product. It also usually is for rehabbing a single-family residence as opposed to a condominium or townhouse. 

If this sounds like a mortgage that is in keeping with your homeownership goals, Residential Mortgage Services can help you get there. Contact us to find out more about this and other renovation mortgages.


General

Residential Mortgage Services raised $50,000 for The Jimmy FundLooking back on 2019: A year of community

Our focus is so often set on sharing information about mortgage loan products or tips on how to buy a house that we sometimes forget to highlight the great and impactful things our employees contribute to their communities. Each employee of Residential Mortgage Services, Inc. (RMS) found their way into the mortgage industry via different paths, but what unites us all is the essense of our motto: We'll Guide You Home.

That isn't a transaction. It isn't a quick "sale." It's a commitment to guide the people who come to us through one of the biggest financial decisions of their lives. To help them reach their goal of homeownership. And owning a home isn't just a checkbox toward the "American Dream," it's establishing a place of safety, family (if so chosen), and wealth. It's a place where you belong. Every house and the occupants within are part of some kind of community. Every employee of RMS is as well.

Up and down the East Coast, RMS employees volunteer, donate, champion causes and help. Here are just a few of the great contributions our employees and RMS made in our communities last year:

 

 

Tracy Spencer of our Nashua, NH office, ran the Boston Marathon to raise money for the Officer Sean Collier Memorial FundLancaster, PA, RMS employees volunteered for the Schreiber Center for Pediatric Development Easter Egg HuntThe Middleborough, MA office sponsored the YMCA 19th annual Tispaquin RunThe Boston, MA team volunteered for Rebuilding TogetherThe Middleboro, MA team volunteered at St Vincent's and Sacred Heart Giving TreeThe Warwick, RI team participated in a food drive for the Rhode Island Community Food BankFour branches across Pennsylvania collected toys for Penn State Children's HospitalMA branches delivered over 100 toys to the Middleboro State Police Barracks

 


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