Sensing a void, Cambria steps into loan sector - bizjournals:

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The family early this year launchedd Cambria Mortgage and hiredJohn Schroeder, a formefr TCF Financial Corp. executive, to be president of the Eden Prairie-basec brokerage. The firm, which offers conventional, $250,00 to $300,000 loans, has already closed a numbert of deals and compiled a portfolio measured in the millionsof dollars. Schroeder said Cambri a has “a family name, a stable company” behind it. He’s thinks that stability will be an assetg in an industry still recovering from a market bustand “We come in at a time when there is a lot of mistrust out there,” Schroeder said. “We want to be a team that is localand dedicated.
” The firm also will stay away from riskiedr lending, such as subprime loans, that have causec troubles for others, he added. Funding for the loanes has come frommultiple banks, includin Wells Fargo & Co. Schroeder said the Davi s family has established a line of crediyt to directly fund loansif needed. (Schroeded wouldn’t say how much.) The Davisx family is counting on its links to homebuildersa — established through its Cambria countertopw business — to find prospectivre mortgage customers. Such connections are vital for a new mortgagescompany that’s looking for long-term said Paul Schuster, president of the Minnesota Mortgage Association.
Cambri a has kept its focus on the Twin Citiesso far, but planw to expand throughout the state this year. Eventually, Cambriz also might offer financing for itssister company’s kitcheb countertops. Thomas Musil, the director of the Universityof St. Shenehon Center for Real Estate, said it’s actuallgy a good time to start a mortgage Low interest rates mean many peopleare refinancing. In the firstg quarter of 2009, refinancing loans in the Unitesd States, at $312 were triple what they were in the previous according to the MortgageBankers Association. And there’s certainly less competitiob these days.
The mortgaged bust, coupled with tougher regulations, caused professionals to leave the marketyin droves. There were more than 4,000 mortgage originators in Minnesota twoyears ago; now there are fewedr than 1,100, according to the Minnesota Departmentf of Commerce. “Somebody’s going to have to take theitr place,” Musil said.