Two Denver firms are joining forces to create the largest locally owned mortgage lending company in the state.
Cherry Creek Mortgage Co. said Thursday that it is merging with Premier Mortgage Group, making it one of the top 50 lenders in the country. Terms of the deal were not disclosed.
“Both of our firms are older- line firms,” said Wil Armstrong, vice chairman of Cherry Creek Mortgage, “and we think the combination of the two will allow us to be well-positioned to grow and serve homeowners better.”
Last year, Cherry Creek Mortgage did $1.7 billion in volume, including $823 million in Colorado. Premier’s volume of $725 million was all in Colorado.
The combined companies, which will operate under the Cherry Creek Mortgage name, are expected to have volume of $2.4 billion, including about $1.5 billion in Colorado, Armstrong said.
Merging companies is a good way to increase market share at a time when rising interest rates are causing the number of loan applications to decrease, said Chris Holbert, president of the Colorado Mortgage Lenders Association.
During the residential real estate market boom between 2001 and 2003, mortgage companies closed about 500,000 loans a year. With interest rates rising, volumes are returning to a normal level of about 250,000 a year, Holbert said.
The merger will enable the companies to maintain volume.
“This is certainly significant, and it may encourage others to think likewise,” Holbert said.
“We increasingly find ourselves competing against the megacompanies, the Wells Fargos, the Countrywides,” said Terry Jones, Premier’s general manager. “They bring nationwide resources, but we believe we understand the local market.”
Premier’s senior executives will continue in key leadership roles with the combined companies. Jones co-owned the company with Bill Woodman, David Andrews, Melanie Nygren, Ariel Solomon and Kathy Stein.
Cherry Creek Mortgage is owned by Armstrong, chief executive Jeff May and former U.S. Sen. Bill Armstrong.
Staff writer Margaret Jackson can be reached at 303-820-1473 or mjackson@denverpost.com.
