Nonprime and Commercial Wholesale Programs

written by
4 · 19 · 10

Among alternative wholesale products being recently touted are subprime, Alt-A and commercial programs.

Alternative programs touted by ACC Mortgage Inc. are no-scored portfolio loans, no-documentation loans and owner-occupied full-documentation with credit scores below 500. Also on the menu are bankruptcy buyouts, second liens and foreclosure rescues.

The Rockville, Md.-based wholesaler said it handles both residential and commercial mortgages. Loan amounts range from $100,000 to $2 million.

A three-point lending philosophy touted by ACC includes showing a tangible net benefit for the borrower, demonstrating the borrower’s capacity to repay the loan and ensuring an accurate appraisal.

Mortgage brokers who refer commercial mortgages to Remington Financial Group Inc. can earn a 25 percent referral fee collected at closing, the 17-year-old firm said in marketing material. Its programs include apartment loans, hard-money mortgages and financing for other commercial property types.

Scottsdale, Ariz.-based Remington announced that it formed Secured Capital Income Fund LP as a joint venture with Black Hawk Capital Managers to raise a $200 million financing fund for bridge loans.

A non-recourse loan program touted by Sterling Commercial Capital can be used for purchase and refinance transactions on commercial real estate including multifamily, anchored retail and mixed-used. Five-year loans ranging from $2 million to $20 million have fixed rates between 7.9 percent and 8.5 percent.

Mercantile Capital Corp. reported a 15 percent rise in originations during 2009 and noted that its wholesale offerings are for owner-occupied commercial mortgages for small- and mid-size business owners of for-profit companies who occupy the majority of the property.

Artice Lending says its platform enables fixed rates below 4.50 percent and loan-to-values up to 80 percent by using other borrower assets as collateral. The company, with two offices in Georgia and one in Dallas, said the program pays 0.50 percent per transaction, allows the broker to charge up to five points.

Artice also indicted that its programs are not covered under the Real Estate Settlement Procedures Act.

Mortgage Expert

Mortgage Daily Staff