Alaska firm hires ex-Hawaii developer to expand in isles

An Alaska-based mortgage investment firm plans to make Hawaii a new focus of its business after hiring a former Hawaii developer and residential brokerage firm principal. Alaska Financial Co. announced hiring Mike McCormack as a vice president with the aim of increasing its business in Hawaii.

The company originates new mortgages for buyers who can’t get typical loans, but its main business is not traditional mortgage lending. It buys mortgages on residential and commercial real estate where the mortgages are held by individuals or companies that sold the property — a niche referred to as seller financing. Alaska Financial offers to buy these mortgages at a discount, and essentially takes the place of the seller who was receiving mortgage payments.

Alaska Financial aims to increase its focus on the Hawaii market by creating a $50 million investment fund to finance mortgage purchases through a joint venture with McCormack, who once owned a Coldwell Banker franchise in Hawaii.