At the moment, Midwest Mortgage Capital is a one-man temporary office in a Maple Grove medical building.
But the newcomer will soon expand. It's already hunting for staff and remodeling its new space in downtown Osseo, where it's scheduled to open Nov. 1.
The St. Louis-based independent mortgage banker is rolling out a welcome mat in the Twin Cities, undeterred by industry predictions for a tough 2014 and the fact that megabanks like Wells Fargo & Co. are trimming mortgage staff in the face of a falloff in refinance activity.
It's one of a number of independent mortgage companies moving into the state, drawn by the area's revved-up housing market and relatively robust economy.
"I'm hearing of a new company every week," said Patrick Martyn, executive director of the Minnesota Mortgage Association.
This is a big change from the years after the nation's housing collapse and the state's relatively fast move to crack down on unscrupulous mortgage lending that helped feed the foreclosure crisis. Mortgage brokers vamoosed, and many independent mortgage banks merged with depository banks or sold their assets to them.
"We're always going to be fighting that black eye," said Jeremy Redlinger, Midwest Mortgage's new branch manager in Maple Grove.
Redlinger, 33, said he worked for years as a mortgage broker and thinks mortgage bankers are now taking over their role. All the new mortgage underwriting rules make the broker model too problematic, he said. "A lot of it has to do with compliance."