Commercial, Reverse Programs Proliferate

Market Direct Capital — which says it is a “national marketing arm” of direct commercial mortgage lenders, hedge funds, insurance companies, private funds and realty trusts — is promoting programs that pay “back-end points” on commercial mortgages up to $10 million. In its marketing piece, the Hoboken, N.J.-based company touts subprime and stated programs for a variety of property types nationwide. Loan-to-values go as high as 97 percent, while seller contributions of up to 3 percent are allowed.

The Crown Valley Group Inc. is marketing hard money loans up to $10 million with rates starting at 11 percent and broker compensation at 0.5 percent. With LTVs up to 75 percent, the Roswell, Ga.-based company said it finances multifamily, retail and industrial properties as well as residential investment properties.

Las Vegas-based Diamond Bay Investments Inc. announced it funds loans up to $15 million on retail, office, industrial, multifamily and land for development as a direct lender. Among its specialities are urgent deals, temporary loans and complex and creative loan structures. Rates range from 12 percent to 14 percent, fees are between 3 percent and 5 percent, and LTVs go up to 70 percent.

Commercial Mortgage Corp. released program details indicating syndicated and private-money loan amounts up to $3 million on California properties with LTVs to 75 percent. Rates reportedly range from 8.35 percent to 12.5 percent, while fees charged go as high as 3 percent. Minimum occupancy is 80 percent, while amortizations go up to 30 years. The San Mateo, Calif.-based company quoted even more competitive terms on some multifamily and commercial programs.

Reverse wholesaler Lender Lead Solutions announced it has improved reverse lending education available for mortgage brokers. Using “expert trainers,” “advanced technology platforms” and “professional marketing programs,” the Melville, N.Y.-based company provides on-site training to help brokers maintain reverse mortgage operations.

Mortgage broker customers of Citi Residential Lending, formerly known as Argent Mortgage Co., were advised they will have access to CitiMortgage wholesale programs in May once they are approved and execute a CitiMortgage broker agreement, a broker letter indicated. The move is the result of the recent consolidation of the two units.

“Ultimately, you will have one Citi point of contact, and as a team we’ll be better positioned to meet your needs,” the message said. “Additionally, through this integration, we’ll now have a dedicated focus on expanded lending product sales.”

Platinum Mortgage issued a recent statement to its mortgage brokers indicating that maximum LTVs will be reduced by at least 5 percent, and minimum credit scores will be increased in markets where the appraiser, the automated underwriting or the mortgage insurer considers the property to be in a declining market. Platinum said it may also impose the restriction if its own research indicates a declining market.

American Sterling Bank issued a bulletin indicating it no longer offers lender paid mortgage insurance.

An Accredited Home Lenders Inc. program alert said it had discontinued all stated-document and investment-property transactions, attributing the move to investor “distaste for these poor performing loan products.

“Until the credit crunch begins to resolve, Accredited has to fund loans that will keep us in business.”

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: mtgsam@aol.com