FHA, Commercial Wholesale Business Sought

Continental Home Loans says its FHAnswer System provides manual FHA loan approvals within 24 hours. Loans are qualified and priced numerically through a 3.2 FNMA upload feature. Compensating factors are automatically calculated while credit specific inputs and credit explanations can be utilized.

“Our paperless online Manual Underwriting Engine is the first of its kind and has truly revolutionized an otherwise cumbersome FHA process, and our latest updated version is even faster,” CHL says in its marketing material.

Ameribank Mortgage Co. LLC issued correspondence indicating it closes FHA and conforming deals in five days utilizing FNMA 3.2 format. On FHA loans, it offers debt-to-income ratios up to 50 percent, Chapter 13 bankruptcy buyouts and manual underwriting. Its SISA program goes up to 80 percent loan-to-value with a 680 score.

Velocity Commercial Capital is advertising stated-income, small commercial mortgage programs with loan amounts ranging from $100,000 to $2 million for borrowers with credit scores of at least 650 for all types of commercial properties. LTVs range from 65 percent on light industrial properties to 80 percent on multifamily properties. The required debt coverage ratio is 1.20 times. Loan amounts go as high as $3 million in lite-documentation loans.

Velocity, based in Westlake Village, Calif., recently announced it rolled out a short-term interest-only program for commercial loans up to $600,000.

Prescient Capital Management is offering a host of services, including financing of up to $150 million for a number of commercial property types. The specialty finance company collects fees from loan closing proceeds ranging from 3 percent to 8 percent and offers interest rates from 11 percent to 13 percent. With a minimum borrower investment of 10 percent cash, loan terms range from one to three years and LTVs go as high as 75 percent.

Among PCM’s offerings are bridge loans, GAP equity, mezzanine loans and loan restructures. In addition, the company acquires distressed assets and bulk purchases.

Lone Oak Fund, which touts itself as “California’s Bridge Lender,” issued correspondence indicating it resolves problem loans and pays referrals on commercial and residential mortgage programs. Among recent transactions it reportedly funded were a $5.4 million loan on six apartment buildings with 87 units, an $0.8 million mortgage on 2,443-square-foot retail building and a $7.8 million loan against a 49,000-square-foot office building.

In a move that has become more common among wholesalers, Chase Wholesale recently advised its prime brokers that every loan package must include a Form 4506-T completed and signed at the time of the application. Chase had already been requiring the form at closing.

Chase Correspondent Lending issued a similar bulletin to correspondent customers shortly after the wholesale bulletin went out.

One MortgageDaily.com subscriber wrote that most third-party originations seem to be moving in this direction.

A message from an Accredited Home Lenders’ account executive indicated the company recently abandoned subprime lending and is focusing only on prime A-paper.

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

e-mail: mtgsam@aol.com