Leading Bankers in Northeast Ohio's New Home Market

Cleveland-based Third Federal Savings & Loan Association is the top lender for new homes in Northeast Ohio, according to Realty One's study of the first six months of 2000. The bank wrote mortgages on 555 new homes, capturing 23% of the new-home market, with an average loan of $154,085. This marks a significant shift in Third Federal's business, as they traditionally dealt with existing home mortgages before aggressively entering the new-home lending market in 1998.

Key Takeaways:

• Third Federal led the new-home lending market in seven of the eight counties surveyed, including Cuyahoga, Geauga, Lake, Lorain, Medina, Portage, and Summit counties.
• Charter One Bank led the market in Stark County, while Metropolitan Bank & Trust came in third with 133 units and 5% of the market.
• National City Bank ranked fourth with 110 homes and a 4.6% market share, and Wells Fargo Home Mortgage ranked fifth with 107 homes and 4.5% of the market.
• The study ranked 50 lenders, with Third Federal also leading the resale market in the region.
• 16% of new-home buyers in Cuyahoga, Lake, and Geauga counties paid cash, reflecting the recent good fortunes of the economy.
• TransCon Builders Inc. is launching a major residential development, "Lake Forest Estates," in Macedonia, which will include 171 home sites and a nature preserve.
• The subdivision is being sold to both builders and individual home buyers, with prices ranging from $80,000 to $90,000 per lot, translating to homes in the $300,000 to $400,000 price range.
• The Western Reserve Home Builders Association merged with the Home Builders Association of Greater Akron, forming a single entity that will serve eight counties.
• The merger created a budget of $1.1 million for the combined organization, led by executive officer Car-mine Torio.
• Fred Ayers, president of F.G. Ayers Inc., is the new president of the Akron Home Builders Association, succeeding Mike Rankine.

Statistics:

• Third Federal wrote mortgages on 555 new homes, capturing 23% of the new-home market.
• The average loan was $154,085.
• Charter One Bank wrote 178 units and 7% of the market, while Metropolitan Bank & Trust wrote 133 units and 5% of the market.
• National City Bank wrote 110 homes and 4.6% of the market, and Wells Fargo Home Mortgage wrote 107 homes and 4.5% of the market.
• 16% of new-home buyers in Cuyahoga, Lake, and Geauga counties paid cash.
• TransCon Builders Inc. is selling 171 lots in the Lake Forest Estates subdivision, with prices ranging from $80,000 to $90,000 per lot.

Sources:

• Realty One's study of the first six months of 2000
• Third Federal Savings & Loan Association
• Charter One Bank
• Metropolitan Bank & Trust
• National City Bank
• Wells Fargo Home Mortgage
• TransCon Builders Inc.
• Western Reserve Home Builders Association
• Home Builders Association of Greater Akron
• Home Builders Association of Greater Cleveland