WASHTENAW GROUP INC (THE)

WASHTENAW GROUP INC (THE)

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Company Overview
The Washtenaw Group, Inc. is a US-based privately held company primarily engaged in the operation as a bank holding company for Washtenaw Mortgage Company, which is engaged in the origination, acquisition, sale, and servicing of mortgage loans in the United States. The company was founded in 1981 and conducts its business from its registered head office located in Ann Arbor, Michigan. The company is listed on the OTC market under the ticker symbol TWHR.
The company’s operations primarily involve wholesale, correspondent, and retail mortgage banking. The wholesale mortgage loan production involves the origination of loans by a network of independent mortgage brokers with funding provided directly by the company and the transfer of these loans to Washtenaw upon closing. Correspondent mortgage loan production occurs through the purchase of loans by the company from independent mortgage lenders, commercial banks, savings and loan associations, and other financial intermediaries that originate loans in their own name using their own sources of funds. The Retail loan operations primarily involve the origination of single-family mortgage loans. As of December 2004, Washtenaw originated residential mortgages through a network of approximately 1,900 mortgage brokers and correspondent lenders in 40 states.
Business Summary
Bank Holding & Holding Company
Description and history
The Washtenaw Group, Inc. was incorporated in Michigan on August 22, 2003 to own and control all of the outstanding capital stock of Washtenaw Mortgage Company. Washtenaw is engaged primarily in the mortgage banking business

The Washtenaw Group currently operates in one segment, mortgage banking, through its wholly owned subsidiary

Lending Activities

Washtenaw originates or acquires loans primarily through the wholesale, correspondent, and retail loan production of its mortgage banking operations. Loans are held available for sale in the secondary market. Wholesale mortgage loan production involves the origination of loans by a nationwide network of independent mortgage brokers with funding provided directly by Washtenaw, which is known as table funding, and the transfer of these loans to Washtenaw upon closing. Correspondent mortgage loan production occurs through the purchase of loans by Washtenaw from independent mortgage lenders, commercial banks, savings and loan associations, and other financial intermediaries that originate loans in their own name using their own sources of funds. Retail mortgage loan production for mortgage banking operations occurs through Washtenaw s retail loan origination office in Ann Arbor, Michigan.

Mortgage Banking Operations.

Washtenaw actively participates in the mortgage banking market on a national basis. Mortgage banking generally involves the origination or purchase of single-family mortgage loans for sale in the secondary mortgage market. The secondary mortgage market and its evolution has been significantly influenced by two government-sponsored enterprises Federal National Mortgage Association (commonly referred to as Fannie Mae) and Federal Home Loan Mortgage Corporation (commonly referred to as Freddie Mac) and one government agency Government National Mortgage Association (commonly referred to as Ginnie Mae). Through these entities, the United States government provides support and liquidity to the market for residential mortgage debt.

Wholesale Loan Production.

Under its wholesale operations, Washtenaw funds mortgage loans originated by a network of approximately 1,900 independent mortgage brokers nationwide. Approximately 32% of these brokers originate mortgage loans for Washtenaw on a monthly basis. This network is maintained by Washtenaw s approximately 25 business consultants, who are compensated through a salary and commission combination. Many of the larger brokers are provided with loan data entry software by Washtenaw for the entry of loan applicant data in a format familiar to that used by Washtenaw s underwriters and for transmission to Washtenaw s automated underwriting systems for review. All loans originated through brokers are underwritten according to Washtenaw s standards

Correspondent Loan Production.

In addition, Washtenaw acquires mortgage loans from mortgage lenders, commercial banks, savings and loan associations, and other financial intermediaries. Washtenaw s selection of correspondents is subject to a separate approval process with higher net worth requirements than wholesale brokers, as correspondents must use their own sources of funds to close loans. The prices of these loan acquisitions are separately negotiated. Warehouse lines of credit, typically obtained from third parties, may be used by the mortgage lenders to finance their respective mortgage loan originations. Washtenaw does not provide warehouse lines of credit for its correspondents. All loans acquired from correspondents are expected to satisfy Washtenaw s underwriting standards and may be repurchased by the correspondent if there is a default of the loan due to fraud or misrepresentation in the origination process and for certain other reasons, including the failure to satisfy underwriting requirements imposed by Washtenaw.

Retail Loan Production.

The retail loan activities of Washtenaw primarily involves the origination of single-family mortgage loans. These retail loan originations generally provide Washtenaw with a source of loan production at a lower cost per loan than loans acquired through brokers or correspondents because the cost of generating these loans is more than offset by cost savings through Washtenaw s ability to avoid payment of the servicing release premium for the related MSRs.

Business Line
Engaged in the operation as a bank holding company for Washtenaw Mortgage Company
Subsidiary

Advisor

IPO date
12/22/2003
US SIC Code
6712
Company Address
3767 Ranchero Drive

City province or state postal code
48108, ANN ARBOR, MI
Phone: 1 (734) 662 9733
Fax:
Country address: UNITED STATES OF AMERICA
Website url: