Mortgage Bank Benefits From S&L Industry Woes

Phoenix Mortgage & Investment, along with other mortgage bankers, is enjoying business gains, according to founder and President John Fairchild, who says that's partly due to problems in the thrift industry.

Fairchild said Phoenix's emergence as a leader in new mortgages for single-family homes fits in with a national trend in response to the savings-and-loan crisis.

Mortgage bankers generally don't hold mortgages, which means they don't need large capital reserves to back those mortgages and make new loans. Instead, they sell mortgages to banks and other financial institutions.

Fairchild said the current home-buying market in the Seattle area is softer than in early 1991 and in previous years.

"I don't see us experiencing boom times soon. This makes it a great time to buy, because you won't have 10 other people bidding on the same house."

Phoenix has offices in North Seattle, Lynnwood, Bellevue and Federal Way.