New Wholesale Programs

Washington Mutual recently announced its approved brokers will be required to prove disclosures of key terms were given to the borrower early in the application process. Among the required disclosed terms are loan amount, loan term, prepayment penalties and whether the interest rate and mortgage payments may change. Brokers must advise borrowers of their total compensation, including broker points or administrative or processing fees, and whether the broker has requested a yield spread premium, the Seattle-based thrift said.

WaMu representatives will call the borrowers to review the key loan terms directly with the customer prior to a broker-originated-loan closing, according to the announcement.

“We believe our mortgage broker standard and direct call program should become the new industry benchmark for brokers and lenders across the nation,” WaMu Chairman and Chief Executive Kerry Killinger said in the announcement. “By adopting these standards, together we can increase consumer knowledge of the home loan process and bring about positive, meaningful change to the mortgage industry.“

Originators have a new jumbo reverse loan from Lender Lead Solutions.

The reverse lender announced the home valuation cap on its Equity Plus Advantage is $2.5 million. Lender Lead noted that 15 percent of its prospects currently have home values above $500,000 — about $17,000 more than the maximum loan limit of the dominating reverse product, the Home Equity Conversion Mortgage insured by the Federal Housing Administration.

Lender Lead said is offering the proprietary jumbo reverse mortgage in its wholesale divisions throughout California, Florida, Arizona and New Jersey — though it intends to add more states to the list.

The creator of the most popular jumbo reverse mortgage, First Financial Freedom, began taking applications for the first London Interbank Offered Rate-indexed HECM on Saturday, the Irvine, Calif.-based lender The HECM Monthly LIBOR 65 product is tied to the One-Month LIBOR index and provides borrowers with all the features and benefits of other HECM reverse mortgages.

The new LIBOR product is aimed at seniors who are willing to sacrifice a small measure of cash benefit in exchange for the prospect of lower interest cost over time on their reverse loan, the IndyMac Bank FSB subsidiary said in the announcement.

First Fractional Funding announced it funds borrowers of fractional-ownership mortgages. The Denver-based company, which focuses on mortgage brokers throughout resort areas of the country for most of its business, noted borrowers of fractional-ownership mortgages have a higher credit, asset and income profile than the average real estate purchaser.

First Fractional, the mortgage lending subsidiary of National Bank Of Kansas City, opened its doors in May 2006, said fractional ownership properties is a new concept that is gaining popularity.

Choice Finance Corp. partnered with Provident Bank to offer home equity loans and lines of credit through their Broker Home Equity Division. Properties located in Maryland, Virginia, Delaware and Washington D.C. are eligible for the products, which have a no closing-cost option and have rates typically below the prime rate.

Choice Finance has reportedly originated more than $27 million in loans at Provident, which says Choice is its largest home equity partner.

In November, LoanSifter will release LoanSifter Prime for general availability. The search engine is customized with all of a broker’s wholesale lending partners and was developed in conjunction with a Beta program used by over 1,200 brokers and loan officers, LoanSifter announced. The solution also automatically sends to lead generators, such as realtors and builders, customized emails featuring a company’s loan products and rates. Full access to LoanSifter Prime will cost $100 per month, based on the minimum two users.