Mortgage Daily Logo

Wholesale 50/30 Program

Mortgage News

A California-based wholesale lender has launched an adjustable rate mortgage with a 50-year amortization.

The 50/30 product — the remaining balance is due in 30 years — is being offered by ResMAE Mortgage Corp., of Brea.

The first 50-year product, also a 50/30 loan, was introduced last March by another California lender, Statewide Bancorp of Rancho Cucamonga.

ResMAE’s loan, according to Richard Theiss, vice president of marketing, is being offered as either a fixed-rate loan or an adjustable rate loan with a choice of two options, with the loan rate fixed for either the first two or the first three years, after which the rate is adjusted every six months.

Rate changes are then capped at one percentage point ever six months and six percentage points over the life of the loan. Like other 50-year products out in the market, it is not available as an interest-only loan.

Paul Abbamonto, ResMAE’s chief of production, told MortgageDaily.com the product “is a good alternative as it provides a reasonable monthly payment, a chance to build some equity, and, when market conditions are most favorable, they can refinance before the due date.”

ResMAE, a wholesale specialty residential mortgage lender and servicer that originates loans through a network of independent mortgage brokers, already has a 40/30 loan, as do most other lenders who have introduced a 50/30 product. It has funded over $15.8 billion in loans since it was founded in January 2003.

The 50/30 program is mostly offered by smaller or regional mortgage companies. For example, Chase Home Finance, First Horizon and Option One all told MortgageDaily.com that they do not offer the product.

Those that did, in addition to Statewide and ResMAE — which is reportedly licensed or qualified to conduct business in all 50 states, include National City Bank of Indiana’s First Franklin, which operates in 20 states, Chateau Mortgage of Louisiana Inc. and Wholesale Lending Online, which operates in 21 states. All their 50/30 loans have balloon payments due at year 30.

The product also is listed as available at the online site, Loan Choice Direct, one of three Web sites operated by McLean, Va.-based First Guaranty Mortgage Corp., but it could not be learned if First Guaranty itself offered the loan.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam