No Red Tape, a wholesale lender that lets brokers submit loan applications online, says it will hire an outside sales force of 50 people to demonstrate and sell its paperless system to brokers nationwide.
At a time when jobs in the real estate finance industry are disappearing at a brisk pace — one economist told Inman News in February that 25,000 to 50,000 jobs could be eliminated this year alone — No Red Tape says it plans to double the size of its sales force to expand its share of the shrinking home loan market.
A division of Metrocities Mortgage, No Red Tape says it funded $3 billion in loans in 2005 — an increase of nearly 60 percent from the previous year.
The company’s Web site lets brokers submit loan applications online, typically getting a response in one to four hours, said Blake Scheifele, No Red Tape founder and president.
“We are currently gearing up to get down to one-hour live underwriting, which is made possible by paperless electronic submissions, which flow directly into our underwriting department,” Scheifele said.
While other companies use software-based “engines” to give applicants fast — but tentative — loan approvals, No Red Tape’s underwriters review applications after they’ve undergone software analysis, and give an official yea or nay.
“It’s a real approval, not just an automated one,” Scheifele said.
The company handles Alt-A first trust deed, second trust deed, and jumbo combos, most in the $300,000 to $3 million range. Fixed, option adjustable-rate mortgage and home equity line products are available.
While the Sherman Oaks, Calif.-based company was built on an inside sales force of about 50 people, Scheifele said, “the best way to get brokers to train on our engine is to get out and show them how it works” using an outside sales staff.