(26 Total References)
Board Members - Ali Forney
Desmond P. Smith
Desmond P. Smith currently serves as the Head of Sales for Capital One Home Loans.
In this role, Smith
is a part of the Home Loans
leadership team and has responsibility for both the Centralized & Distributed Sales channels.
Prior to joining Capital One, Desmond was a Managing Director at Citibank and most recently served as National Sales Manager for CitiMortgage, NA and had responsibility for both Retail and Correspondent Lending.
has been in the Retail Mortgage Banking sector for more than 20 years; First starting out his
career as an intern during college for the Department of Housing and Urban Development - Federal Housing
has done almost all job functions in the Retail Mortgage business from origination to underwriting and is widely considered a pioneer in the revitalization of the FHA 203K
program in the early 1990's.
The program which he
created for Norwest Mortgage (now Wells Fargo Home Mortgage) is still utilized today.
Desmond has also held senior management positions at JPMorgan Chase, where he served as Senior Vice President, National Retail Sales Executive (bank and non-bank footprint) and Wells Fargo, where he served as Senior Vice President, National Program Manager, overseeing all of their New Construction, Renovation, Reverse Mortgage, and Non-Prime businesses.
Desmond serves on the board of The Ali Forney Center which focuses on providing both emergency housing and shelter along with long-term foundational support for LGBT youth.
Desmond has a BSBA degree in Finance from Boston University and resides in Greenwich, Connecticut.
Builder Joint Ventures
"We will definitely be seeing more affiliated business arrangements with builders in the future," says Desmond Smith, senior vice president for business development with Chase Home Finance, Edison, New Jersey.
In addition to providing homebuyers one-stop shopping, affiliated arrangements also give home builders more control over their business, Smith
adds."When someone walks into a builder center and is a qualified buyer, the builder wants to get them approved and lock them in as soon as possible.The builder has control if they have a marketing agreement or joint venture with a lender.They know that the customer is qualified, so they can feel comfortable building that house," Smith
was hired last October to lead a team focused on developing strategic alliances with Realtors and builders.Previously he worked for Wells Fargo Home Mortgage and at the Department of Housing and Urban Development (HUD).
Chase has a total of 30 joint ventures, four of which are with builders.The company has 375 affiliated business arrangements; 50 of those are with home builders, Smith
says."There are three levels to our partnerships: a desk rental, a marketing agreement and a joint venture," he
While today Chase has a relatively small number of builder partnerships, that is about to change, according to Smith
."We don't have a lot of builder JVs right now.But I came from a competitor where we did a lot of builder JVs, and that's one reason they brought me over here," he says.
Currently Chase's largest builder joint venture is with Neumann Homes Inc.
, Warrenville, Illinois.NeuWay Mortgage Services, Naperville, Illinois, has loan officers on-site in the builder's offices, Smith
says."It's truly that one-stop shopping approach, and we've seen a large capture rate," he
says.The Neumann Homes venture will do more than $100 million in builder volume in 2004, he
says. Chase Home Finance
's joint ventures are typically 50-50 partnerships, Smith
says."Chase currently operates under a broker model.The loan would close under Chase Home Finance
When processing and underwriting loans that come through builder joint ventures, Chase adapts to the builder's needs, Smith
says."We're a decentralized lender.We process in our local branches.In our joint ventures, we have the ability to create whatever model we believe is best to serve our client," he
"Some builders are very concerned with where things are done.Other builders may just feel that they expect a certain level of service, and will trust Chase to determine how we choose to process, underwrite and close loans," he
The Chase name and brand are appealing to builders seeking to affiliate with a large, well-known lender, Smith
says.And the company's technology allows borrowers to receive approval within minutes, he
adds."It's very much a streamlined process-not only for the customer, but for the builder, too.They know they have a real, live customer who is approved, and that's very important to a builder," he
Builder joint ventures have access to Chase's wide array of mortgage products, as well as a long-term rate lock program, Smith
says."Chase can also give builders the ability to offer a forward commitment," he
The rate locks Chase offers depend on the market and the type of homebuilder, Smith
says."On a builder, most locks are six months.Some of the condo developments take you out nine months to a year.We've had a request recently from a condo developer to see if we could offer an 18-month lock, which we'll do," he
Chase is open to partnering with both small and large builders, Smith
says."Mainly, I'm looking for someone to make a commitment to Chase, as obviously Chase is looking to make a commitment to them," he
For very small builders, Chase may offer a marketing agreement that could ultimately lead to a joint venture."Typically, we're looking for a builder who does at least $35 million in annual sales to do a joint venture.That's kind of our guidepost, but we're certainly willing to talk to other builders who may be smaller but are growing," Smith
Emerging markets are key Smith
believes there will be a shift in the industry toward builder joint ventures targeted to lower-cost homes and emerging- market buyers."A lot of the builder joint ventures in the industry have been targeted to moderate to large-scale homes.Now you're starting to see that focus change as emerging markets are very key.First-time homebuyers are extremely important," he
Chase has launched a significant initiative around emerging markets and how it targets builders who build for the first-time homebuyer and emerging-markets segment.This includes builders that focus on Federal Housing
Administration (FHA) loans, Smith
As part of that effort, Chase is concentrating on big cities and metropolitan statistical areas (MSAs), Smith
adds."A rental base is probably where you'd start.When you branch out of the cities, you see a lot of first-time homebuyers and people in condos.The apartment condos are being converted, and they're offering people who are renting the chance to buy their unit.That's real big right now," he
In particular, Smith
sees Chicago, Washington, D.C., the New York metropolitan region and several areas in both Florida \and California as regions where there is a big population base of potential first-time homebuyers and emerging-market buyers.
Partnering with Chase Commercial Real Estate
The access to the large commercial real estate group of JP Morgan Chase
, New York, gives Chase Home Finance
an edge on competitors, Smith
says."It's something that not a lot of other-even large- lenders provide.I see a big opportunity there," he
says. Chase Commercial Real Estate Banking Group
lends to many builders around the country, Smith
says.Clients of Chase Commercial Real Estate Banking Group report they built a total of 64,000 homes last year, he
adds.Partnerships where Chase Home Finance
would offer the builders' clients the end mortgage are a logical scenario, Smith
offers the home builder a huge opportunity through Chase's ability to lend the commercial money to buy land, build actual homes or develop condominiums, as well as to take out the mortgage.I commit that you will see quite a few of those types of partnerships from Chase Commercial Real Estate Banking
and Chase Home Finance
in 2005," Smith
sees a 70 percent capture rate as a base target for builder joint ventures, but believes capture rates of up to 90 percent are possible."If we're sitting on-site with the builder, we should be able to capture 85 [percent] to 90 percent of those customers, because it's truly one-stop shopping," he
will "absolutely" be entering into more builder joint ventures, Smith
says."We are making substantial strides into this market.I have a goal to sign at least 10 builder or condo joint ventures in 2005, and numerous marketing agreements on top of that," he
"I'd like to get us to a point where we're doing at least $1 billion in builder mortgage volume.I'm not sure we'll get there in 2005, but we'll definitely get there in 2006," Smith
"Why wouldn't they want to let us either buy their mortgage company or fold their mortgage company into a joint venture with Chase Home Finance?," asks Smith
."We'll be a general partner, and we'll basically take all the risk because we manage the mortgage company.I think we're going to have some opportunities in 2005 and beyond to go to some of these large home builder and present that offer," he
Much depends on the economy and the how both the building and mortgage industries fare in the future, Smith
says."It's  been a phenomenal year for the home-building industry, and a phenomenal several years for the mortgage industry.If things start to tighten up at all, my sales pitch to that home builder would be 'Why would you want to have this risk, when your goal is to build homes and sell those homes?," he
...Desmond Smith, senior vice president with Chase Home Finance, Edison, New Jersey, has witnessed numerous instances of affiliated business arrangements that violate the Real Estate Settlement Procedures Act (RESPA.) "I've absolutely seen that-not from any of the national players, but from some of the smaller players," he says.
"Especially when it comes to the builder joint ventures [JVs] and marketing agreements, some smaller lenders have been doing things that some larger lenders are very suspect of.I have heard HUD
has started an investigation into at least a couple of lenders."
Violations are more likely to occur with marketing agreements, Smith
says."On the joint venture side, the legal terms are very much laid out.There's really no gray area," he
Capital One Financial Corp. said that Desmond Smith has joined the company as head of sales for Capital One Home Loans.
Smith joins Capital One from Citibank in New York where he served as managing director responsible for all originations across channels including distributed retail, direct to consumer, relationship retail, strategic markets and correspondent lending.
Prior to joining Citigroup, he was senior vice president of national retail sales at JPMorgan Chase Bank.
Board Members - Ali Forney
Desmond P. Smith
Pat Mayfield Consulting, LLC - Testimonials
Desmond P. Smith, Sr. Vice President, JPMorgan Chase Bank, N. A.