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New American Funding

New American Funding

New American Funding specializes in joint ventures

  • Creating a substantial mortgage stream revenue
  • We're experts in the mortgage industry so you don't have to be
  • One size does not fit all - we have the right model for your business
  • Variety of loans for you clients' personalized needs
  • Unique benefits of working with New American Funding
For further information, please contact Al Miller at 949-303-8600 or email at al.miller@nafinc.com.

A Trusted Resource for Your Team

When you partner with NAF, you’re giving your team direct access to one of the nation’s most reputable privately-owned mortgage companies.

You’re pointing them to a network of professionals committed to providing an efficient and affordable path to homeownership for people of all backgrounds. 

And you’re closely tied in with an innovative industry leader quickly growing beyond the mortgage space into a whole-home provider.

An Experienced Leader in Joint Ventures

We have the infrastructure, needed processes, and systems to run a successful, independently branded mortgage business. You are the best at what you do, and so are we, so you can entrust us with most of the day-to-day heavy lifting.

Why It Makes Sense to Work With NAF

The Right Model

Multiple partnership models fit the unique needs of almost all partners. We can mitigate the risk associated with being in the mortgage business and minimize the capital-intensive nature typically required while producing a long-term reoccurring revenue stream and providing far greater control over the mortgage process.

Personalized Loans

As a private company, we remain nimble and can adjust to market conditions without consulting shareholders or investors. This enables us to offer all the traditional loan products and a suite of unique programs specially designed for today’s homebuyers and homeowners.

Unique Benefits

State-of-the-art technology creates a smooth process for borrowers, real estate agents, loan officers, and operations staff. We offer unique programs that cater to the needs of diverse buyers, including a nationwide cash buyer program, a lead source system, and a deep product menu with the full ability to broker loans.

There are four different models to discuss.

As the basis of this, each joint venture is set up to where NAF goes into a mortgage business agreement with a company or even with several different companies/groups, and the net profits are distributed in a Respa-compliant manner based on the percentage of ownership. These can be with several different types of businesses, such as real estate brokerages, residential new home builders, regional banks, and credit unions, as well as a large organization with a significant number of customers/members that mortgage services can be sold to.

There are four main models to learn about and consider.

Standalone Model, We jointly form a mortgage banking company that we each own 50%. This model is intended to be utilized for prospective partners with a significant scale business, which after analysis, can support the funding of mortgage loans of at least $150 million annually.

The Consortium Model is where NAF creates a standalone mortgage banking company that will sell shares equal to 50% of the company. Not all have the needed scale or capital to justify a standalone JV, so in this model, shares are intended to be for companies that individually have the scale of loan funding a minimum of $50 million annually and aggregate fundings for the combined owners of $300 million annually. The member earns a distribution of profits for the entire company based on the percentage of shares owned. This model is currently popular in the Title business.

Mortgage Brokerage Model This model has a low barrier to entry in that capitalization and licensing complexities are much less than the standalone model, as are the economics and ability to control service delivery. At this time, we would only consider this if it were done based on using it for speed to market and as a strategy to evolve into the full mortgage banking model in the not-too-distant future. This lower investment is because most states require liquid capital in the range of as little as $25k to $200k. In addition, there is a need for a reasonable amount for the initial operating capital. Note that this model will not be a direct FHA / VA lender, and under the requirements of Dodd–Frank, there is a limitation on the amount of total income that can be generated. There is also additional disclosure required to the consumer as to the amount of gross income that is being generated for the mortgage transaction.

Partial Acquisition Model This would primarily be used when a company owns and operates an independent mortgage business and is looking to reduce its current capital investment and risk by selling a 50% portion of that business to NAF and then entering a standalone JV. This could also be used if a company is already in a JV with a lender and that lender is willing to sell NAF their ownership. One of the advantages of this model is speed to market as it mostly requires a change of control notification to the various regulators of the current JV.

For further information, please contact Al Miller at 949-303-8600 or email at al.miller@nafinc.com.