Tech-focused IMB InstaMortgage just made a big inter-channel splash, merging with All Cal Financial, one of the top mortgage brokerages in the country.
"While we are extremely invested in tech, we are also very invested in our hybrid model of having a strong fleet of loan officers, especially in a year like 2022 when the rates are going up and the refinance volume is considerably lower," said Shashank Shekhar, InstaMortgage CEO. "You want smart loan officers in the field originating loans for you."
The deal for All Cal, helmed by top-25 producer Jim Black, came together over about eight months, Shekhar said. The brokerage has particularly close relationships with local real estate agents in California, a major selling point for InstaMortgage.
Black has joined as chief lending officer at InstaMortgage and brings a wealth of mortgage product knowledge to the table. InstaMortgage has mostly been known for its vanilla offerings, but plans to diversify its mix this year.
"As All Cal comes in, we are looking at three major products," Shekhar said. "We are looking at bridge loans, we are looking at reverse mortgages and we are looking at an exclusive partnership for a product called trade-in mortgages, which is when you try to buy a home [while] you're still living in a home. It's how you are able to tap the equity in the current home to buy the second home but you don't have to qualify for two mortgages at the same time."
InstaMortgage, which originated about $800 million last year, is projecting about $1.4 billion in originations in 2022. (All-Cal did about $300 million a year in 2021.)
Shekhar said that upon hearing news of the All Cal merger, the heads of three other top mortgage broker shops called inquiring about also potentially doing a deal.
LOs – what do you think about broker shops merging with IMBs? Do you expect more to follow? Share your thoughts by emailing me anonymously at jkleimann@housingwire.com.
Stay tuned for my upcoming HW+ piece on the deal, which will have a lot more details. Not a subscriber? Click here to get 25% off by using the code LendingLife25.
James Kleimann
Managing Editor, HousingWire
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