For the second straight year, Bay Equity Home Loans has earned a spot on the San Francisco Business Times list of the “Top 100 Fastest-Growing Private Companies” in the Bay Area. Bay Equity was among a select group of financial firms to make the list, which ranks independent and privately held organizations according to their 2009-11 revenue growth, as certified by PricewaterhouseCoopers.
“We are pleased to be in the top 100 fastest-growing private companies for the second consecutive year,” said Brett McGovern, president of Bay Equity. “Our team has made significant progress in setting the table for long-term, sustainable growth. Building a solid, well-capitalized company that provides revenue and job growth for the Bay Area is something we all take pride in.”
Bay Equity’s 400-plus employees work in 35 retail offices in 12 western states.
Brett McGovern and his brothers Jon and Casey launched the company in 2007 with $1.75 million in capital they raised from friends and family. Starting a residential mortgage business at the beginning of the housing crisis was a huge gamble, but the McGoverns’ timing, it turned out, worked in their favor.
As Brett McGovern told the Business Times in 2011: “The competitive landscape had basically been wiped clean, and there had been over 400 lenders that had gone out of business in the previous three years. We started with a clean balance sheet and no legacy loan issues, which was key.”
In 2008, its first full year of operation, Bay Equity reported just under $1.1 million in revenues. Revenues in 2009 increased more than 500 percent, to almost $6.5 million. Revenue in 2010 grew to more than $17 million. Bay Equity currently draws capital from warehouse lines and sells its mortgages to large banks such as Wells Fargo.