The mortgage industry has faced a series of upheavals in the past few years. Inflation, interest rate rises, and economic uncertainty have posed huge challenges for loan companies, brokers, and borrowers. That’s why Newrez’s recent acquisition of Caliber Home Loans has sent ripples through the broker community.
But what does this powerhouse partnership mean for brokers like you?
As part of our new video series, Divisional Vice Presidents John McElhone and Chris Mozilo, reveal an insider look at what changes are coming to Newrez, how we’re redefining the broker-lender relationship and our plans for investing in new technology to give brokers a competitive edge.
You’ll hear about how Newrez has overcome the challenges facing the industry and come out stronger than ever, and what our growth plans are following the acquisition. John and Chris share a closer look at RezClub and its unique benefits to help you maintain your competitive edge and retain your customers, even beyond closing. Learn about how Newrez’s diverse product offerings give us a strong footing in the market and enable you to offer flexibility to your customers.
What Newrez’s acquisition of Caliber means for brokers
The combined forces of Newrez and Caliber mark a key point in our growth journey to create a stronger, more versatile and financially stable model to serve our broker partners and borrowers. We have big plans on the horizon and have already committed to investing heavily in our technology and broker portal.
What can you expect from the new acquisition going forward?
A culture of innovation
The acquisition blends the strengths of both companies, creating a culture focused on execution and innovation. We’ve combined the best practices and tools from both organizations to optimize our processes and create a more efficient system that enhances the service our broker partners provide.
With renewed financial strength, we can adapt quickly to market changes and provide that much-needed stability for brokers and borrowers. Our broker portal has seen recent upgrades and investment on making it the best possible solution for brokers to manage deals, connect with borrowers, and find competitive rates.
Diverse product offerings
There’s no one-size-fits-all approach at Newrez. That’s why we provide access to a wider range of loan types, including non-QM solutions for borrowers having a hard time getting the finance they need. Whether it’s non-QM solutions like self-employed, investment loans or VA loan programs-- we’ve got you covered.
This allows our broker partners to stand out in a crowded market and reach a wider range of customers with unique and more complex needs.
Experts on hand
Newrez and Caliber’s joint forces of industry experts include our account executives and closing team – seasoned professionals who are empowered to help brokers with expert advice, assistance in structuring deals, and problem-solving to ensure you can provide the best service to borrowers.
Our growth and strengthened position in the market means we can invest in our talent and training to make sure that every touchpoint you have with Newrez combines expertise with efficient communication and assistance.
How Newrez has adapted to market challenges
It’s no secret that times have been tough for the past few years. In 2023, following COVID, skyrocketing interest rates slowed things down after high competition in the housing market. We’ve seen some lenders and brokers struggling through the volatility. But we’re pleased to report Newrez has weathered the storm and made huge investments toward future growth.
With our acquisition of Caliber, we’ve emerged from these difficult times in a much stronger position, giving brokers like you much-needed stability and reassurance so you can focus on your borrowers and the service you provide.
Here are some of the key ways we’ve navigated the market challenges that continue to rock the mortgage industry:
We run a flexible operation
Newrez Wholesale has struck a balance between centralized and decentralized operations. This hybrid approach allows us to leverage all the benefits of centralization while maintaining the flexibility and local expertise of decentralized teams.
Our varied product offerings and specialist teams on hand to assist mean that we can offer a more flexible service to you, which you can pass onto your borrowers to enhance your own offerings and services.
Maintaining profitability despite the tough market
While many lenders struggled during recent market contractions, Newrez managed to stay profitable. Unlike many organizations, Newrez covers both the origination and servicing of loans. This gives us enhanced stability in a shifting market, allowing us to remain profitable.
As Chris explained, "There's some comfort for a broker to know that they're working with a wholesale lender that's going to be around in all markets.”
How Newrez’s product offerings set us apart
In volatile markets, diversification is key. That's where Newrez really shines.
Our lineup covers all the bases, from your typical agency loans to government-backed options, jumbo mortgages for those high-end properties, and our ace in the hole – non-QM loans.
Our non-QM loans, aka our Smart Series loans, are tailor-made solutions for borrowers who don't fit into the conventional loan box. Maybe they're self-employed, have unique income situations, or are investing in short-term property letting. Borrowers in these categories often have a trickier time finding the right broker who can provide exactly what they’re looking for. But by partnering with Newrez, you can expand your offerings to reach previously untapped borrower markets.
The top thing that sets us apart is that these are our own products, built and managed in-house. We're not just middlemen here. We do our own underwriting and pricing, which means we can pivot when needed and have the flexibility to offer products our borrowers really need.
It means you can say "yes" more often, even when other lenders are shaking their heads. And in this market, being able to close those challenging loans can make or break your year.
How Newrez helps brokers retain borrowers beyond closing
We all know that when a loan closes, that’s not the end of the story for brokers. Ideally, you want borrowers to keep you in mind when it comes to refinancing† in the future or securing another loan.
But that’s where things get tricky for brokers. Working with a wholesale lender can be a mixed bag. What happens if they pass on loans to another servicer? You’re essentially competing against them in the future to win your borrower’s business again. That’s valuable time you could put to better use helping new and existing borrowers.
The good news is that with Newrez, we don’t just churn out mortgages and toss them to another organization. We hang onto almost 100% of the loans we originate because we provide the servicing side as well.*
Why does this matter to you as the broker?
When we maintain the servicing, we’re keeping that connection between borrowers and brokers alive. But we wanted to go one step further and launched RezClub, our broker members program.
As part of RezClub, brokers get the benefit of RezConnect – a way to stay in touch with borrowers and maintain a great relationship for the long haul. If your borrowers are looking for a new deal, you’ll be automatically notified so you can get in touch with them again. Think of it as leads served on a silver platter.
That’s not all. The monthly mortgage statements that borrowers get have your name and contact information front and center, meaning that you’re always top of mind. This makes returning to you as their original broker a no-brainer solution which is faster and more convenient than contacting another broker.
The benefit for borrowers is they get to reconnect with the person who arranged the loan in the first place, offering consistency and comfort in the stressful process of securing a new loan. They get great service from you, and you get to retain borrowers alongside us.
Bottom line? With NewRez, you're not just closing loans – you're building a pipeline for future business!
Ready to join the brokers club?
With RezClub’s unique benefits and our handy broker portal, Blueprint, empowering brokers is a huge part of our growth plans. We will continue to invest in resources and technology to help you provide a high-value service to borrowers, securing your competitive edge in a turbulent market.
To access the exclusive tools and retention programs that Newrez Wholesale offers, get in touch today through your account executive or contact us to find out how you can set up as a Newrez broker partner.
*Newrez does not retain servicing on all loans originated and may not service loans originated for the entire term of the loan.
†By refinancing an existing loan, the total finance charges may be higher over the life of the loan. We may transfer the escrow account balance from the current loan to the new loan. If the current escrow amount is insufficient due to changes in taxes or insurance, we may require additional money when closing on the new loan.
For real estate and mortgage professionals only and not intended for distribution to consumers or other third parties.