Just 16 mortgage lenders, brokers make Inc. 5000 list in 2023

Just 16 mortgage lenders, brokers make Inc. 5000 list in 2023

The top mortgage lender on the Inc. 5000 list was VA Wholesale Mortgage, which specializes in offering home loans to veterans and active duty military members. Founded in 2019, the Virginia-based lender saw a 2,230% three-year growth rate. 

Zap Mortgage (no.294) placed second among the mortgage lenders, growing 1,915% in the past three years. Trius Lending Partners (no.678), InstaLend (no.769) and American Mortgage Mortgage trailed with a three-digit three-year average growth.

Companies that debuted on the Inc. 5000 list notably relied on tech or niche products to generate volume. 

InstaLend is a tech-enabled real estate loan lender that provides capital to residential developers through streamlined technology and automated workflow, according to its website.

Freerateupdate.com – which ranked sixth as the fastest-growing mortgage lender on Inc. 5000 –  is a mortgage broker and partners with other lenders to generate leads for VA, FHA, purchase, refi and personal loans.

At a time when refis dried up and loan officers are in desperate need of deals, some loan officers are leaning into buying leads — from companies including Zillow, Realtor.com and Freerateupdate.com.

Non-qualified mortgage (non-QM) wholesale lender AD Mortgage scooped up origination volume largely due to the improvement in tech that ultimately helped it gain market share from competitors, Max Slyusarchuk, CEO of A&D Mortgage, previously said in an interview with HousingWire

The lender developed its proprietary loan origination software, servicing software, pricing engine and customer relationship management system last year pivoting from using a third-party mortgage tech software systems.

“We continue investing in tech while it’s not that crazy busy. We are doing a lot of research and development in it and artificial intelligence,” Slyusarchuk said. “We believe that this is the time of opportunity because the rates can go up, but sooner or later, they will start coming down.”

Only one top 25 HMDA lender by origination volume made the Inc. 5000 list. in 2023. CrossCountry Mortgage, the country’s 11th-largest lender per HMDA, ranked 3,020 with an average three-year growth of 172%.

The mortgage industry is still rightsizing following nearly two years of historically low rates. 

An average independent mortgage bank (IMBs) and mortgage subsidiaries of chartered banks lost $534 in Q2, according to the  Mortgage Bankers Association (MBA).

It’s a big improvement from the $1,972 loss per loan in Q1 2023. Including both the production and servicing business lines, 58% of retail mortgage companies were profitable in Q2, up from 32% in the previous quarter.

With mortgage rates currently north of 7%, there’s a rate lock-in effect in which homeowners are reluctant to give up their existing low rates and take on a new mortgage with higher rates. 

While loan officers have said 5% would be the magic rate that would get homeowners to move, the MBA doesn’t expect the average 30-year fixed rate mortgage to drop below 5% until 2024. 

Rank Company Growth (3-yr Avg.) HW Media Category
252 VA Wholesale Mortgage 2,230% Mortgage Lender
294 Zap Mortgage 1,915% Mortgage Lender
678 Trius Lending Partners 869% Mortgage Lender
769 InstaLend 766% Mortgage Lender
997 American Mortgage Mortgage 594% Mortgage Lender
1,273 Freerateupdate.com 464% Mortgage Broker
1,472 AD Mortgage 392% Mortgage Lender
1,649 NXT Mortgage 341% Mortgage Lender
1,700 ASTAR Home Capital 329% Mortgage Lender
2,524 Griffin Funding 216% Mortgage Lender
2,829 MortgageDepot 188% Mortgage Broker
3,020 CrossCountry Mortgage 172% Mortgage Lender
3,552 RCN Capital 139% Mortgage Lender
3,590 Freedom Mortgage 136% Mortgage Lender
4,196 New Western 106% Mortgage Lender
4,209 The Everest Equity Company 105% Mortgage Broker
Source: Inc. 5000 – 2023

Originally Appeared Here

About Caroline Vega 228 Articles
Caroline Vega combines over a decade of digital strategy expertise with a deep passion for journalism, originating from her academic roots at Louisiana State University. As an editor based in New Orleans, she directs the editorial narrative at Commercial Lending News, where she crafts compelling content on commercial lending. Her unique approach weaves her background in finance and digital marketing into stories that not only inform but also drive industry conversations forward.