StarNet Financial, Inc. (StarNet or the Company) was incorporated in 1987 in Delaware under the name Sarkis Capital, Inc. The Company is engaged in the business of originating, purchasing and selling mortgage loans secured primarily by single-family and condominium residences through traditional distribution channels and over the Internet.
The Company originates mortgage loans through its net branches located across the United States; conducts wholesale loan originations and processing operatio...
StarNet Financial, Inc. (StarNet or the Company) was incorporated in 1987 in Delaware under the name Sarkis Capital, Inc. The Company is engaged in the business of originating, purchasing and selling mortgage loans secured primarily by single-family and condominium residences through traditional distribution channels and over the Internet.
The Company originates mortgage loans through its net branches located across the United States; conducts wholesale loan originations and processing operations using a nationwide network of independent mortgage loan brokers; and conducts direct consumer mortgage loan origination over the Internet.
The Company’s loan origination activities include offering a variety of residential mortgage loans, attracting suitable loan applicants, reviewing borrower credit and mortgaged property title, appraised value and insurance (underwriting), issuing conditional loan commitments, and funding qualified loans at closing. Upon origination, the company pools and sells both conforming loans (generally loans to borrowers with perfect or good credit) and non-conforming loans (generally loans to borrowers with below average or delinquent credit) to institutional investors. The company sells individual loans to such investors.
The company is licensed, or are exempt from licensing requirements, to originate, purchase closed loans, underwrite, and fund or sell residential mortgage loans in 33 states in the United States. The company sells loans primarily to DLJ Mortgage Capital, Impac Mortgage Holdings, Homeside Lending, Cendant Mortgage, Chase Manhattan Mortgage, IndyMac, Interfirst Mortgage, Household Finance, Ohio Savings Bank and numerous other mortgage companies and investors.
In addition, the company participates in the following Texas bond programs Denton County Finance Corporation Single Family Mortgage Revenue Bonds, Garland Housing Finance Corporation Single Family Mortgage Revenue Bonds, Collin County Housing Finance Corporation Single Family Mortgage Revenue Bonds, Grand Prairie Housing Finance Corporation Single Family Mortgage Revenue Bonds, and Tarrant County Housing Finance Corporation Single Family Mortgage Revenue Refunding Bonds.
As a mortgage lender, the company generates revenues by originating and subsequently selling loans. These revenues consist of loan processing fees, net gain on sale, and net interest income.
The company conducts business through two wholly owned subsidiaries and two distinct operating divisions. StarNet Mortgage, Inc. and Residential Lenders, Inc. are its wholly owned subsidiaries. Occidental Mortgage Company and StarNet Retail are operated as divisions.
Business Units
StarNet Mortgage, Inc. (StarNet Mortgage)
StarNet Mortgage is residential loan origination subsidiary comprised of net branch offices presently being established across the United States.
The Company’s net branch program offers one of the most comprehensive packages of benefits, products, and services to experienced mortgage professionals in the marketplace, including affiliation with a national corporate identity, full lender status as a mortgage banker, exemption from certain regulatory licensing, fee disclosure and net worth requirements, access to a comprehensive and competitive product line, FHA and VA direct endorsement underwriting, sub-prime underwriting, improved processing efficiency through Internet-based automation systems, established investor relationships, marketing programs, staff training, production and recruitment incentives, accounting, bookkeeping and payroll services, and group benefits like health insurance.
StarNet Retail
StarNet Retail is residential loan origination division under which the retail operations and homebuilder group programs are conducted or will be conducted. StarNet Retail is a fully-approved FHA loan underwriter offering a comprehensive menu of conventional as well as government-insured mortgage products to its clients.
Residential Lenders, Inc. (RLI)
RLI is retail originator in Eastern Region and Internet originating division. RLI receives approximately 1,500 hits per week on their website. From these hits, RLI will contact the customer and turn that lead into a new loan. RLI also advertises extensively on the Internet. RLI has recently entered into the wholesale arena. This wholly owned subsidiary has hired staff to originate mortgage loans throughout the Eastern region of the United States.
Occidental Mortgage Company
Occidental is a division, which originates mortgage loans from 33 states and through three areas of origination: wholesale, retail and Internet originations.
Occidental operates two offices in Irvine, California, and Denver, Colorado, serving 33 states. It has centralized underwriting and funding out of the Irvine location, thus making the Denver location a production office only. In addition, all of its secondary marketing is handled out of the Irvine location.
Each of the company’s subsidiaries and its Occidental division also offers integrated, interactive, easy-to-use websites providing complete mortgage transaction fulfillment.
Services and Products
The company provides a range of mortgage lending services, which include conventional, governmental, jumbo (large loan amounts) and non-conforming home mortgage loans. The majority of loans are made to owners of single-family and condominium residences who use the loan proceeds to purchase new homes or (to a lesser extent) refinance existing home mortgages.
The company provides a variety of products to its approved mortgage broker customers related to home loans. In general, the company offers mortgage brokers products for their clients who have credit from A (perfect and good credit) to D (below average and delinquent) and who desire conventional loans, government loans, conforming loans, and non- conforming loans. All mortgage products are secured by the real property used as collateral for the mortgage.
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