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Wholesalers Add FHA, VA and Non-QM Products

Mortgage News

Wholesale mortgage lenders have been expanding their offerings recently, and government programs and non-QM programs were among the additions.

A report from the American Bankers Association, 22nd Annual ABA Real Estate Survey Report May 2015, was based on a survey of 182 banks.

The report indicated that 19.2 percent of
bank mortgage originations during 2014 were sold to private mortgage conduits or aggregators, rising from 17.6 percent a year earlier. The rest of the loans were either retained in the banks’ investment portfolios; sold to Fannie Mae, Freddie Mac, the Federal Home Loan Banks or other financial institutions for portfolio investment; or securitized through Ginnie Mae.

The conduit/wholesale share has risen each year since 2011, when it sank to 17 percent from 22 percent in 2010.

ABA said that BB&T and U.S. Bank tied for the No. 1 spot among aggregators last year. Wells Fargo was next, followed by the FHLB, SunTrust and Franklin American.

In April, United Wholesale Mortgage announced the launch of Pronto, a help desk for mortgage brokers with loan questions.

The Troy, Michigan-based firm said that the Pronto centralized platform relies on UWM
client relationship managers, underwriting experts, closings experts and leaders.

“It gives brokers and correspondents an opportunity for second opinion, when they want it,” the statement said. “UWM still provides direct access to underwriters and all the mortgage professionals that touch the loan; Pronto simply compliments the current process with a comprehensive solution-focused team.”

A month earlier, UWM, which claims to be “one of the nation’s largest and fastest growing wholesale lenders,”
said that Freddie Mac’s new Home Possible Mortgage program is now available to its brokers.

The program allows refinances with up to 97 percent loan-to-value ratios regardless of the existing loan type on owner-occupied one-unit properties.
The 97 percent LTV ratio also applies to purchase transactions with no income limits for borrowers in under-served areas.

That same month, UWM’s Elite ARM was released. The Elite product line, which was originally launched in 2012, provides preferred conventional rates and pricing for well-qualified borrowers with FICO scores of at least 760.

Elite loan amounts start at $250,000 and allow up to 80 percent LTV ratios.
The adjustable-rate mortgage product includes hybrid loans with fixed rates during the first five and seven years.

“This new product enables our broker partners to help get their borrowers the best option that fits their needs,” UWM President and Chief Executive Officer Mat Ishbia said in the news release. “It gives our clients an edge over the competition.”

More information about UWM’s programs is online at www.uwm.com/mortgage-products.

The Carrington Loan has been made available to wholesale lending clients of Carrington Mortgage Services LLC, a May 27 statement said. The product has no closing costs or up-front financing fees and is directed at under-served markets and first-time home buyers.

Carrington said it
pays all eligible loan costs as lender credits.

Broker-clients of
Santa Ana, California-based Carrington will be able to improve their offerings for clients referred by real estate agents, while they can also use the program to refinance loans insured by the Federal Housing Administration as well as mortgages guaranteed by the Department of Veterans Affairs.

“With The Carrington Loan, there is no need for a mortgage broker to modify the rate after it is presented to the borrower to offset loan costs and loan closing fees, and unexpected increases to estimated closing costs are not an issue,” Carrington Mortgage Services Executive Vice President Ray Brousseau said in the announcement. “Removing these barriers simplifies the process for our mortgage broker partners and their borrowers who desire to fulfill their dream of homeownership.”

Carrington said in April that it added FHA 203k loans to its product line. The program, which is used to finance home renovations, allows credit scores of as low as 550.

More information about Carrington’s wholesale offerings can be found at www.CarringtonWholesale.com.

Parkside Lending LLC earlier this month reintroduced Parkside Collateral, a program for investment-property loans that don’t meet the Consumer Financial Protection Bureau’s definition for a Qualified Mortgage.

The program focuses on positive cash flows and “sensible and responsible”
underwriting. While there is no limit on the number of financed properties owned by the borrower, Parkside won’t finance more than four properties or more than $2 million.

LTV ratios go up to 70 percent, according to Parkside, and loan amounts start at $75,000 and go up to $1 million for four-unit properties. The minimum credit score is 700.

Parkside Collateral loans don’t require debt-to-income ratios on the borrower. Instead, up to 90 percent DTI ratios are allowed on the property, itself. Acceptable properties include single-family residences, planned-unit developments, condominiums and two- to four-unit properties.

“This non-QM product addresses the current lack of liquidity for loans that do not fit the conventional mortgage space and answers a real need among creditworthy borrowers who wish to purchase or refinance investment properties,” Parkside Lending Executive Vice President of Sales Clint Rosenthal said in the statement.

In May, San Francisco-based Parkside Lending said it
began offering FHA-insured loans.

“By offering FHA loans, we are able to support a larger percentage of our clients’ business and broaden homeownership opportunities for qualified borrowers,” Parkside Lending Chairman and Chief Executive Officer Matthew Ostrander said in the announcement.

Parkside Lending touts its products online at www.ParksideLending.com.

Advancial Federal Credit Union recently distributed a marketing piece that indicated it will fund wholesale jumbo mortgages up to $3 million.

It also touted an asset-depletion program, Expat loans and foreign national loans. In addition
it will finance investment properties, hobby farms and non-warrantable condominiums and “condotels.”

The Dallas-based financial institution said it offers cashout loans up to $1 million and warehouse lines up to $10 million.

Advancial operates online at www.advancialwholesale.com.

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