The company, Bosgraaf Capital LLC, originates and closes mortgage loans for Bosgraaf customers. and Huntington Mortgage Group underwrites, manages and services the loans.
It’s the first such partnership for Huntington in the Michigan market, said John Burmeister, area manager of the mortgage group.
He said the company was successful in a similar joint venture in its Columbus, Ohio market and decided to try it here.
Bosgraaf Capital became a legal entity last November and beginning closing loans in December.
Burmeister estimates Bosgraaf Capital closed on about 15 mortgage loans in December and January.
Under terms of the deal, Huntington Mortgage manages the joint operation, does the hiring and training, and makes all the bank’s financial products and services available to the builder’s customers.
“We’ve probably got four others that we are discussing and negotiating on at this point with builders and realtors.
“The beauty there is that we handle the mortgage side of it, we hire the people, we maintain the expertise and they get the opportunity for a share in the revenue for the referral of the business,” Burmeister explained.
He said Huntington approached Bosgraaf Builders with the partnership idea.
Bosgraaf Capital operates right out of Bosgraaf Builders corporate headquarters on Douglas Avenue in Holland.
Burmeister said some partners prefer to have the joint venture run out of their own headquarters, while others prefer running it out of a Huntington’s office.
The person that runs Bosgraaf Capital, in fact, was an employee of Huntington bank who decided she wanted to become an employee of the joint venture, he noted.
In cases of other potential partnerships Huntington has on the drawing board, the bank will hire a person to work for each.
Two people now staff the Columbus joint venture because of the volume of the loans it generates.
Bosgraaf’s home building activity is about right on target for this kind of business partnership.
“To make it work and be cost effective, they (partners) need to do around 200 units per year,” Burmeister explained. “For a smaller builder or developer the economics just don’t work for them.”
As Michael Bosgraaf, president of Bosgraaf Builders, sees it, the joint venture gives his customers the ability to apply for financing at the same time they’re picking out cabinet, windows and floor coverings for their new homes.
“This new effort is another part of our commitment to simplify the home-buying experience for our customers,” he added.