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

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The family early this year launched Cambria Mortgage and hiredeJohn Schroeder, a former TCF Financial executive, to be president of the Eden Prairie-based brokerage. The which offers conventional, $250,0090 to $300,000 loans, has already closef a number of deals and compiled a portfolioo measured in the millionsof dollars. Schroedeer said Cambria has “a familyu name, a strong, stable behind it. He’s thinks that stability will be an assegt in an industry still recovering from a market bustand “We come in at a time when therer is a lot of mistrust out there,” Schroedetr said. “We want to be a team that is trusted, locap and dedicated.
” The firm also will stay away fromriskierd lending, such as subprime loans, that have causerd troubles for others, he added. Funding for the loanws has come frommultiple banks, including Wells Fargok & Co. Schroeder said the Davis family has establishe a line of credit to directly fund loansif needed. (Schroeder wouldn’t say how The Davis family is countinyg on its links to home builders established through its Cambria countertops business to find prospectivemortgage customers. Such connections are vital for a new mortgagescompany that’s looking for long-term success, said Paul Schuster, president of the Minnesota Mortgage Association.
Cambria has kept its focuws on the Twin Citiesso far, but plana to expand throughout the stater this year. Eventually, Cambria also might offer financing for itssister company’s kitchej countertops. Thomas Musil, the director of the Universityof St. Thomas’ Shenehojn Center for Real Estate, said it’s actuallyy a good time to start amortgage brokerage. Low interestg rates mean many peopleare refinancing. In the firsgt quarter of 2009, refinancing loans in the United States, at $312 were triple what they were in the previous according to the MortgageBankers Association. And there’es certainly less competition these days.
The mortgagee bust, coupled with tougher regulations, caused professionalsw to leave the marketin droves. Thers were more than 4,000 mortgage originators in Minnesot a twoyears ago; now there are fewefr than 1,100, according to the Minnesota Departmenr of Commerce. “Somebody’s going to have to take theirt place,” Musil said.