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Published on 08/18/1997 All articles from this issue

Los Altos mortgage firm goes 'OnLine'

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By Clyde Noel

Town Crier Staff Writer

Business Profile

In the last three years, no segment in the real estate industry has seen as much change as the mortgage industry, and it's because of computer technology and the Internet.

"There is an improvement in efficiencies and a reduction of costs because of the increased use of computer technology," said Bob Cranmer-Brown, a partner in the mortgage company, OnLine Capital of Los Altos. "In years to come there will be more and more loans by fewer people. The smaller less efficient mortgage companies can not compete."

Following an internal reorganization, Cranmer-Brown and Sam Khadder, principals of ComUnity Lending's Los Altos office, became affiliated with OnLine Capital, a member of First Mortgage Network. The office is now independently owned and operated with the new name, OnLine Capital of Los Altos.

"Consumers expect a lot more from a mortgage lender these days. They expect faster decision making and loan approvals, but at the same time they want the variety and options that are available through mortgage brokers," Khadder said. "Our software enables us to track the process of each loan, 24 hours a day, and report up to the minute progress to our clients."

Most consumers are more sophisticated today, because they know how to get information from the Internet themselves and are able to compare rates on a daily basis.

OnLine Capital means the business is conducted online. Brokers take the application on a laptop and download it into the processing center. All the information will be returned immediately.

"This type of technology and service used daily, allows for a mix of price, product and convenience," Cranmer-Brown said.

With clients in Los Altos, Palo Alto and neighboring mid-peninsula cities, OnLine Capital of Los Altos conducts most of its business in the upper-end market, and has strength in both the refinance and purchase markets. The company is actively seeking experienced loan originators.

On Line Capital of Los Altos will be in the position to instantly approve many loans, even those with high debt ratios as long as the borrower has excellent credit. The system doesn't decline any loans, but identifies the more difficult transactions up-front, allowing them to focus proper resources on the loan right away.

"In a competitive market like today, we have a client making an offer to buy a house and we can close the complete transaction within a week because of technology," Cranmer-Brown said.

Most of the upper-end loans made by OnLine Capital are jumbo loans over $215,000. The present 30 year fixed mortgage rate is 7.625 percent with one point.

"A loan is a personal thing and a lot of our clients with higher incomes and larger loans are choosing a loan that is fixed for one year. The rate is 6.25 percent," Cranmer Brown said. "At the end of the year, they refinance at no cost, and save 1 to 2 percent over the long term of the loan."

OnLine Capital of Los Altos is located at 241 S. San Antonio Road.

For more information on loan processing, call 941-3900.