
Franck Ruimy, CEO of Dunmor, remains optimistic about the residential investment lending market in the coming year, despite the challenges posed by high interest rates.
He anticipates strong activity in investor acquisitions and new construction projects ahead.
Dunmor and Newfi Partnership
Dunmor, a lender focused on business-purpose residential mortgages, recently announced that Newfi Lending, a nonagency mortgage lender backed by Apollo Global Management, has made a minority equity investment in the company.
In an interview with Sarah Wolak from HousingWire, Ruimy shared his expectations for a booming sales year in 2025 and noted the growing significance of the business-purpose lending (BPL) sector.
As major investors look for financing solutions, lenders like Dunmor are stepping into the spotlight.
Impact on the Residential Real Estate Market
When asked how the Dunmor-Newfi partnership will impact the residential real estate market, Ruimy explained that the collaboration, supported by Apollo, brings vital resources and financing structures that will help Dunmor scale its operations effectively.
He clarified that Newfi’s minority stake in Dunmor comes with an active involvement in a joint venture, enabling the company to access comprehensive financing solutions.
This setup allows Dunmor to support its current operations while also selling parts of its production to Athene, Apollo’s merged insurance subsidiary, providing a solid financial foundation for growth in the BPL sector.
Future Market Dynamics
When discussing the landscape of real estate investors, Ruimy acknowledged that while there are smaller players, larger entities are driving significant business.
He highlighted that bigger investors, securing loans in the hundreds of millions annually, are increasingly relying on BPL lenders as their go-to financing source, marking a shift away from traditional banking.
Turning to future market dynamics, Ruimy discussed the downturn in construction financing and residential sales over the past two years but expressed hope for 2025.
Early signs point to increased sales for new construction, especially in multifamily projects.
He noted that while single-family home construction might experience modest growth due to high mortgage rates, developers are finding ways to adapt.
Finally, when asked about Dunmor’s strategy to maintain its lead in high-quality residential mortgage origination beyond the Newfi partnership, Ruimy highlighted his team of over 60 experts and a tech-driven platform that spans nearly all U.S. states.
Dunmor is focused on expanding its footprint and has invested in technology that enhances loan origination and management.
An innovative broker portal streamlines the process, allowing brokers to submit borrower information and receive instant quotes.
With AI-driven risk assessment and the backing of Newfi and Apollo, Dunmor is primed for future growth.
Source: Housingwire