Banking & Finance

| BANKING & FINANCE | Mortgage broker aids family of 10

AWilmington mortgage broker helped ring the closing bell at the New York Stock Exchange on July 21 as part of an industry celebration.

Patrick Stoy, founder and president of MC Mortgage Group in Wilmington, was one of numerous independent brokers honored on National Mortgage Brokers Day by United Wholesale Mortgage, a prominent wholesale and purchase lender. He was recognized by UWM, which is MC Mortgage Group’s lender, because of his success in helping a family of 10 secure a USDA mortgage during the pandemic. The family was struggling with the high cost of housing in California, Stoy said. When the COVID-19 pandemic allowed the father to work remotely for the first time, they decided to move to the Wilmington area because they have relatives here.

“They got an RV and drove it across the country: the father, the mother and eight kids – two of whom are special needs – and a cat,” Stoy said. “Their RV broke down in Colorado, and they had to replace the RV’s water pipes, which had burst.”

Once they reached Wilmington, the family lived in their RV in a local campground searching for a home they could afford. They found one on a couple of acres in Burgaw and, according to Stoy, the family’s income qualified them for a USDA 100% mortgage. But there were complications in explaining to the lender how that income was calculated.

“There was also a problem in finding an appraiser who wanted to go out to Burgaw in the middle of COVID,” Stoy said, adding that time was of the essence so the family could avoid having to pay another month’s rent in the campground.

The USDA came through, and the family is now settled in their new home.

“This was one of the most enjoyable transactions I’ve ever been involved with, and I’ve been doing this for 21 years,” Stoy said.

JENNY CALLISON

PHOTO C/O UNITED WHOLESALE MORTGAGE Housing honors: MC Mortgage Group President Patrick Stoy recently was recognized at the NYSE for helping a family secure a USDA mortgage during the pandemic.

Live Oak Bancshares reports on investments

Live Oak Bancshares’ investments in financial technology companies is paying off, according to company President Neil Underwood, who oversees the company’s investment arm.

“The entire portfolio continues to thrive,” Underwood said during Live Oak’s second-quarter earnings call July 22. “Each of these companies solves a major problem in financial services.”

Live Oak Ventures, a subsidiary of Live Oak Bancshares, has invested nearly $26 million in Finxact, Payrailz, DefenseStorm, Savana, Greenlight and Philanthropi. While it has not invested cash in Apiture, Live Oak’s joint venture with First Data Corp., it has made a human capital

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investment in the form of seasoned Live Oak professionals who work with the firm.

With two exceptions, the fintechs are used by Live Oak Bank to enhance its operations in such areas as mobile payments, cloud-native banking software, digital efficiency, cyber security and fraud detection. The exceptions are Greenlight, a debit card for kids that is managed by their parents through a phone app, and Philanthropi, which is used within the company only to enable Live Oak employees to make charitable contributions that are matched by their employer, officials said.

“We’ve invested $26 million at [these companies’] very early stages, and the implied value today is $182 million,” Underwood continued, noting that Live Oak’s estimate of implied value is based on most recent transaction data and is not necessarily indicative of current or future value. Nevertheless, Live Oak’s investment subsidiary is confident these investments will be financially sound and will give the company early access to leading-edge technology.

“We expect these companies to continue to raise growth capital at elevated valuations,” Underwood added. “We know this is a really difficult thing to forecast but as you can see, this quarter is real and it’s tangible. Perhaps more important than the economics is Live Oak Bank’s adoption of these technologies for the next generation cloud-based tech stack allows us to build best-in-class fintech life products.”

During the call, Underwood also provided an update on Canapi Ventures, a separate investment engine of which he, Live Oak Chairman and CEO James “Chip” Mahan and Gene Ludwig, are partners. Ludwig is the founder of Promontory Financial Group.

Canapi Ventures aimed to attract sizeable investments from financial institutions and create a fund that would find and invest in next-generation financial technologies.

Underwood reported in the earnings call that Canapi Ventures ended 2020 with investments of about $650 million from 44 banks. The American Bankers Association, the Independent Community Bankers of America and several state banking associations are also Canapi investors, according to a release from the venture capital firm.

“We’ve been operating for about 18 months and as you can see, we’ve been very, very busy,” Underwood said, noting that the venture capital fund has made 20 investments in 16 portfolio companies in that time. Canapi Ventures will also glean management fees, which will enhance its returns on investment.

Firm becomes RIA, opens Port City office

Dominion Wealth Management LLC has become an independent Registered Investment Advisor (RIA), the firm announced in early July.

“With this launch, Dominion aims to create a one-of-a-kind wealth management experience by providing unbiased financial advice, cutting-edge technology, and the widest range of investment options available to their clients,” officials stated in a news release, adding that the new designation will allow Dominion to provide “truly unbiased financial advice without the restrictions, sales quotas, and pressures placed on advisors by large, overseeing wirehouse (multi-branch national brokerage) firms.”

Dominion will also launch a new technology suite that allows clients to view their financial plan, investment and bank accounts, and debt balances all from their phone, the release stated. It will also expand its investment offerings to include unlisted securities, exclusive private placement and hedge fund offerings and cryptocurrency.

The firm was founded in 2009 in Whiteville but recently added a Wilmington location and hired Webster Burrier as director of wealth management. It is designed to serve as an alternative to the traditional, single-adviser financial services model by working as a team with specializations in wealth management, accounting and estate planning, according to the release.

“This is a huge step for us as a firm,” Dominion founder and principal Alan Thompson said in the release. “Serving my clients and fellow community members has always been at the heart of my practice and I am extremely excited to continue to fulfill that mission.”