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Mortgage firm expands
The lender said Thursday that it's acquiring Greenwood Village- based Premier Mortgage Group for an undisclosed amount.
Cherry Creek Mortgage, also based in Greenwood Village, did about $1.7 billion in lending last year, both in new mortgages and refinancings, across 25 to 30 states, Vice Chairman Will Armstrong said.
With the addition of Premier Mortgage Group, which operates primarily in Colorado, Armstrong said he expects Cherry Creek Mortgage to surpass $2 billion in loans and crack the top 50 companies nationwide in production.
It's the second deal this year for Cherry Creek Mortgage; it added Chicago-based Majestic Mortgage in May.
Mortgage companies are coping with a drastic shift in their business. As interest rates rise, the refinancing market has evaporated.
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Bankrate: Mortgage Rates Fall to Three-Month Low
Mortgage rates declined for the third time in the last four weeks on the heels of slower second quarter economic growth. The average 30-year fixed rate mortgage fell to 6.65 percent, the lowest since April 26. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points. The average 15-year fixed rate mortgage, popular for refinancing, dropped by a similar amount to 6.3 percent. On larger loans, the average jumbo 30-year fixed rate declined to 6.86 percent. Adjustable rate mortgages also declined. The average 5/1 adjustable rate mortgage slid to 6.36 percent, and the average one-year ARM retreated to 6.03 percent. Validation that the economy did indeed grow at a slower pace pushed mortgage rates lower this week.