A new home lending program that targets credit-challenged borrower prospects is being made available through the retail and wholesale lending channels.
According to 1st Alliance Lending LLC, there are
millions of under-served borrowers who seek to overcome past credit challenges and purchase a home.
So the East Hartford, Conn.-based company said Monday it is launching a national platform to enhance its ability to lend to this segment.
The new program will be offered through a retail channel that targets real estate agents, builders and financial institutions.
A wholesale channel will cater to mortgage brokers, mortgage bankers and community banks. Credit unions will also be targeted for the services.
“Both channels will offer FHA loans underwritten by 1st Alliance Lending,” the statement said.
1st Alliance National Director of Business Development Rick Cardillo noted in the announcement that borrowers with prior hardships are challenged to finance a home.
“1st Alliance has had great success in serving those borrowers,” Cardillo said. “We are excited to make our platform and expertise available to the mortgage and real estate communities to help them meet the needs of under-served borrowers and serve a more diversified borrower base.”
In February 2014, the Consumer Financial Protection Bureau hit 1st Alliance with a consent order that included an $83,000 civil money penalty. The lender allegedly violated the Real Estate Settlement Procedures Act when it split revenues with a hedge fund.
Information about the new lending program is available to prospective wholesale clients at www.1AWholesale.com.
