Harv Wyman
Orange County's Mortgage Manager

Since being featured in South Coast Magazine's 2004 winter edition, we recently caught up with Harv Wyman, president of American United Lenders, Inc. We felt it was particularly timely, given the fact that the recent developments in the real estate and mortgage markets are all over the news.

What is your take on this situation?

The recent turbulence in lending is mostly to do with the "sub prime" mortgage market. This situation should not come as much of a surprise, because when you are lending money at 100% loan-to-value to borrowers that have poor credit and cannot document the necessary amount of income to qualify on paper, i.e. tax returns, this would inevitably be the result especially if property values decline. Many of these borrowers were expecting values to continue to appreciate and a year or two down the road refinance out of these sub-prime loans to less expensive loans with better terms.

Does American United Lenders get involved with these sub-prime home loans?

We specialize in A paper loans, and have since the company was established in 1991. This is just the type of business we have gravitated to over the years.

In the early 1990s Wyman developed what he calls his Mortgage Management Program. Having a financial background as financial consultant, Wyman decided to approach the lending business with the idea of managing the debt side of the balance sheet -- the debt side being one's mortgage. Since a mortgage is usually a person's largest obligation, it bears a borrower's full attention. "I take the approach that a mortgage is a financial instrument that must be managed, just like any other financial investment. I believe that homeowners should think of a mortgage as part of their financial tool kit, one that should be actively monitored, at least as frequently as one monitors a savings and or a brokerage account. Utilized properly, a mortgage can be a key component in one's financial plan and wealth-building strategy.

How do you accomplish this?

Well, we use various loan products to keep the cost, or interest rate below market over time. We use no-cost loans and refinance two times per year with ARMS, interest only and 30-year fixed products to accomplish this objective. We have clients that have been on our Mortgage Management Program since 1992.

How are you getting the clients?

We work strictly on a referral basis through past clients. We also work with some of the top Realtors in the area, such as Dave Mason of Coldwell Banker, Arne Dewitt of Remax, Michael Caruso with Ocean Ranch Realty, and Mark Palma of First Team. To best serve our clientele, we have offices in Laguna Niguel, Newport Beach, and San Jose.

What kind of advise would you give to borrowers in this environment?

My advice would be this: If your mortgage balance is larger than your "liquid" net worth, you should closely monitor your home loan. I would encourage borrowers to talk to someone they trust, such as their CPA, financial consultant, or mortgage consultant. Talk to them about your present situation -- work, how much longer you plan on working, how long you plan on living in your house, do you require any near-term capital for home improvement, college, investment, etc., and see what advise they may have for you. Having formal lending agreements with approximately 75 of the top lenders in the country, such as all the major banks, savings and loans as well as the primary mortgage bankers allows us to match any borrower's goals and objectives with the appropriate loan program.

American United Lenders
32451 Golden Lantern, Suite 205
Laguna Beach, CA
949-363-2500

(South Coast Magazine - Spring 2007)