Cenlar — unlike many of the large mortgage subservicers out there — is a federally chartered and regulated wholesale bank. And this isn’t some recent development. Our roots in banking go back nearly a century.
In the present day, our bank charter means you can depend on Cenlar to have strength, stability, safety and soundness, all must-haves when faced with stringent federal standards.
But it comes with an internal dedication to honor our past, as well. Our name — Cenlar — is a symbol of that, the result of a marriage 41 years ago between two longstanding, community-oriented financial institutions. It’s been clear since my first day at Cenlar that the very same focus on clients and homeowners — on people — that was paramount then is still at the heart of our value system today.
So, it only makes sense then to be relentless in our search for ways to better partner with our clients. And that includes being creative in how we use the bank charter that came with the creation of Cenlar many decades ago.
We want our clients to know we’re always here to collaborate and navigate the complexities of asset liquidity — ready to operate as an extension of their balance sheet. We spend a lot of time talking with our clients, and we know they'd love to have more products. That’s especially true with HELOC products, given the historically high amount of equity available in homes right now.
If we can help our clients in any way, we're going to do that. And, based on the conversations we’re having, it’s clear now is the perfect time for us to expand our offering to our partners.
Uniquely Us in Our Offering
It was important to focus on what we can uniquely offer to the marketplace. And for us, it's twofold.
First is a loan acquisition conduit, where we purchase residential loans of all types from our clients or prospective clients. This allows our partners to be free from capital restraints, scaling quickly by raising reliable funding to keep their pipeline moving and their closings on track. It also takes some pressure off of their balance sheet, further allowing them to stay focused on driving new business.
Second is a mortgage lending finance platform where we provide debt and finance mortgages, whether it's mortgage loans at origination, mortgage servicing rights (MSR), servicing advances or supplements for other nuances that come with owning MSR cash flows. For mortgage lenders, this kind of infusion isn’t just financing — it’s fuel for their entire operations.
We do more than fund, though. Our team members at Cenlar have deep subject matter expertise and have sat in the seats and made the tough decisions for publicly traded companies. And we want to bring that expertise to our clients as a service and be a trusted advisor, especially when our partner firms may be struggling with sensitive items. It can help people understand their assets better when you have someone you trust there to take a second look. We have the expertise and the relationship to be there whenever our clients need it.
So, it’s simple — two offerings to help our partners do business, unlike a traditional bank that has a multitude of products and winds up competing with its clients.
Our end goal: to harness the capability of Cenlar’s wholesale bank to complement our long-standing expertise in mortgage subservicing by building out a robust conduit that serves our existing clients and strengthens client relationships through enhanced service offerings. This approach will bolster the safety and soundness of our business and of our clients’ businesses, positioning Cenlar as an indispensable partner in the financial ecosystem.
Business is easier when you have someone you can trust to help you navigate. We know that first-hand at Cenlar, as the relationships we enjoy with our client partners are strong, deep and rich in history.
We plan to build on that solid foundation to help bring Cenlar and our clients to new heights, together.
