PLAN WILL PLACE LOAN OFFICERS WITH REALTORS Alain Pinel Realtors and Wells Fargo Home Mortgage announced a joint venture this week that will place loan officers in each of the 15 privately owned offices in Northern California. The launch of the venture, Partners Financial Services, is the latest example of a trend toward one-stop shopping in the real estate industry. ``The majority of lenders do have policies in place now that encourage loan officers to retain relationships with local Realtors,'' said Doug Duncan, chief economist of the Mortgage Bankers Association of America. Such policies are driven in part by industry expectations of an end to the refinancing boom, Duncan said. Refinancing transactions now make up about 75 percent of all mortgage transactions in the nation, he said, or an expected $2.25 trillion in 2003. ``Wells Fargo is pre-positioning for a downturn in the refinance market by making sure they have consumer contact for the home-purchase market,'' Duncan said. ``Because when interest rates go up at some point, lenders will have to be in the home-sales business, or they will be out of business.'' The in-house lending process may be convenient for customers, but it could also be a financial pitfall, some experts say, if consumers don't shop around for the best deal. "It's always a concern," said Raphael Bostic, director of the Casden Real Estate Economic Forecast at the University of Southern California, which tracks California trends. ``The home buyer can't be a passive participant in this process,'' Bostic said. ``They have to know what the market is and what the trends are to make sure they are getting a good deal. Brokers are in the business of making money, so they will try within reason to get people to use products that are advantageous to the bottom line.'' Alain Pinel officials say customers will be able to choose any lender they want, as is the standard practice. Partners Financial Services is a marriage between the Bay Area's largest independent residential real estate firm -- with more than 1,250 agents -- and one of the nation's biggest lenders. Wells Fargo Home Mortgage, a subsidiary of Wells Fargo & Co., funds about one of every eight home loans nationwide. ``For our customers it means their agents will have a lender they can talk to directly at any time,'' said Paul Hulme, chairman and chief executive of Alain Pinel. The company is scheduled to launch July 1, but officials say there are loan officers in seven Alain Pinel offices now. Eric Hester, general manager for the venture, predicts the company will generate about $2 billion in mortgage originations the first year. ``The business is there, we just have to make it convenient for the consumer to use our new services,'' Hester said. Alain Pinel reported $7 billion in sales in 2002, he added. ``Consumers are demanding one-stop shops,'' said Kasie Ricker, a spokeswoman for Coldwell Banker. The real estate company -- which owns its mortgage operation -- has loan officers in each of its 64 Northern California offices, Ricker said. ``Today's market kind of requires that a client be able to come into a real estate office and find a home and apply for a loan,'' Ricker said. ``Obviously, Wells Fargo saw the writing on the wall and felt the same way.''
