Network Home Loans….

“We make loans, not excuses.  It’s that simple.” -Kevin C. Lane, President

In order to understand how a company can best help its customers, it’s important to understand that company’s history and the history of those who lead it.

In 1981, Jim Blodgett is one of three co-founders of Seattle-based Emerald Mortgage Company.  He serves as its President until 1987 when he leaves to start Network Mortgage Services.  The company officially opens for business in the spring of 1988 after obtaining its FHA Direct Endorsement and VA Automatic certifications.  The Savings & Loan crisis is in full swing and the economic recession of 1990 to 1991 is just around the corner.  This crisis causes a serious slowdown in both the finance industry and the real estate market.  It’s a challenging time for many banks and mortgage lenders.  However, the company relies on Blodgett's experience and conservative financial nature to help navigate through the turmoil and, during this time, Network gains a reputation as an independent and financially stable mortgage banking company.  When asked if the company would survive its infancy while the economy was in the midst of a grave recession, Blodgett responds by saying, “I figure if we can make it through the early 1980’s with interest rates in the 17-18% range, we can handle anything so long as we’re properly prepared for it.”  Time proves him right and the company goes on to experience record growth in 1992 and 1993.  Over the next several years, Blodgett correctly anticipates many of the highs and lows of the economy and, little by little, positions the company as one of the financially strongest mortgage bankers in the northwest.  Little could anyone image that some 20+ years later, that preparation would pay off as many of the largest financial institutions in the country would collapse and nearly bring down the entire financial system in the process. 

Throughout the 1990’s, Network Mortgage Services maintains its financial stability as the company produces a record of stable earnings, buoyed by a strong capital position, and secures stable and long-term funding resources.

In 2001, Network Mortgage Services obtains approval from the Federal Home Loan Mortgage Corporation (Freddie Mac) and opens its wholesale lending division.  Seeking to take advantage of the growing presence of mortgage brokers in the marketplace, the company sets out to do business with a select few mortgage brokers who are willing to commit to originating high credit quality loans.  Within a short period of time, the number of approved brokers numbers 43 and the wholesale division accounts for nearly 50% of revenue. 

In 2003, the company opens a correspondent lending channel and begins buying closed loans from a select number of local mortgage banking firms.  In 2007, as the early stages of the financial recession began to take hold, a growing number of mid-sized mortgage bankers find their interim funding resources drying up and the company makes the decision to stop buying closed loans.  “As it turns out, the timing of that decision was perfect,” states Blodgett, “as the markets seized up, many midsized companies were saddled with millions of dollars in worthless loans.  We weren’t and that’s no accident.”  At the same time, the company scales back its wholesale lending operation to focus on the potential growth within its retail channel.

In August 2007, Geoff Nester joins Network Mortgage Services, is named Senior Vice President and is tasked with heading up the company’s Lynnwood Home Loan Center.       

In October 2007, Executive Vice President Kevin Lane becomes President of the company.  Jim Blodgett remains Chairman and Chief Executive Officer.  “I was excited about the job,” Lane says, “but I just didn’t have any idea exactly how bad the economy was going to tank nor could I have imagined the severity of the impending credit crunch.”

As 2007 comes to a close, the company posts the lowest revenue from operations in seven years.  The great recession begins to hit all sectors of the economy.       

Over the next several months, it becomes Lane’s job to help navigate the company through a number of challenges that have never presented themselves before; the mortgage meltdown, the hard hit economy and subsequent recession, a seemingly never-ending mountain of federal and state regulatory changes and a near total collapse of the secondary mortgage market.

The financial landscape is about to be altered forever.  Soon, Washington Mutual, Countrywide, Bear Stearns, Lehman Brothers and hundreds of other lenders, large and small, are gone.  At the same time, company executives plan for changes that will eventually lead the company to experience record growth and, in the middle of the worst recession since the great depression of the 1930’s, Network Mortgage Services expands its footprint in the Puget Sound region.  The key, Lane says, is that the company was financially rock solid and sought to avoid, early on, the very loans that destroyed so many others.  “We fought the sub-prime bug, we fought the Alt-A bug, we fought the Option ARM bug,” Lane says, “…at the end of the day, we simply made loans to people that we expected would pay them back.  That’s the basic principal of sound lending and it’s the principal this company was founded on.” 

Lane says that the company’s philosophy was in conflict with the vast majority of its competitors and originators at the height of the easy credit environment that fueled the refinance and housing construction boom that lasted until the fall of 2007.  “Avoiding those loans cost the company a lot of sales talent and, potentially, a lot of revenue,” Lane says, “but caving in would have killed us in the end, as it did for so many others.”

In 2008, the company expands into Everett, Washington and opens a satellite office in Spanaway, Washington.

The company celebrates 20 years of operations and ends 2008 on a high point, setting production records in nearly every category and reversing course from the previous year.     

In April 2009, Olympic Northwest Mortgage joins the Network Mortgage family and is later rebranded as Network Mortgage Services.

In August 2009, the company’s Everett branch expands to become the Everett Home Loan Center and is relocated to the recently developed Everett Gateway Center.

In 2009, the company closes a record number of residential loans; posting 65% increase from the previous year and, for the second year in a row records its most profitable year ever.

In April 2010, the company marks its 22nd anniversary and, after nearly a year of planning, becomes Network Home Loans.  The Network Mortgage Services name is officially retired.

Network Home Loans was founded on the basis that a local mortgage banker could best serve its customers by being financially responsible and expecting its borrowers to be the same.  “It wasn’t our desire to be the biggest; it never has been.  It’s our desire to be the best and that’s something we have to strive for every day,” states Blodgett. 

Over the years Network Home Loans has successfully adapted to changing circumstances and emerging challenges.  A loyal and stable workforce led by a leadership team that recognizes and rewards the effort and achievements of its people, instills an expectation of high ethical behavior, and chooses to invest wisely in technology and training has made this achievement possible.  With offices in Lynnwood, Everett, and Silverdale, Network Home Loans employs some of the best and brightest people in our industry.  The company has originated billions of dollars in residential mortgage loans and offers experience serving the unique needs of an ever changing and diverse market place.