While fewer wholesale lenders seem to be chasing fewer mortgage brokers lately, several recent offerings go beyond traditional conforming and government programs. Among those still pursuing third-party originations are commercial and reverse mortgage lenders.
In a recent rate sheet, San Francisco-based Bay Equity LLC touted yield spread premiums up to 3.731 percent on 30-year fixed-rate conforming loans. Conforming debt-to-income ratios are allowed up to 50 percent on mortgages with less than 80 percent loan-to-value. Bay requires a minimum loan amount of $100,000, and all loans are required to include two years’ income verification regardless of DU findings.
Deerfield Beach, Fla.-based North Star Lending is promoting second-home financing for borrowers with five to 10 financed properties. The LTV is limited to 75 percent and requires a minimum 720 FICO score as well as additional asset requirements. Rate-term refinances are available on existing second homes and investment properties at 70 percent LTV.
North Star noted that it will finance properties that are just one day off the multiple listing service at 70 percent LTV, though cashout and investment transactions require six months off the MLS.
Alison Calamia was named customer account manager at Generation Mortgage Co.’s wholesale division, a news release last week said. The Atlanta-based company, which claims to be “one of the nation’s leaders in reverse mortgage lending,” said Calamia will help expand correspondent business and support Generation’s wholesale team.
From Aug. 1, 2008, through July 31, 2009, Generation closed 3,389 wholesale reverse mortgages — ranking it as the sixth biggest wholesale reverse mortgage lender, according to data reported by Reverse Market Insight. The reverse lender was recently announced as a charter member of the National Reverse Mortgage Lenders Association’s Wholesale Lenders Program.
Another reverse mortgage wholesaler, Value Financial Mortgage Services Inc., is attempting to capitalize on the July demise of 1st Reverse Financial Services and Senior Lending Network. In a recent solicitation, the Miami-based firm asked former correspondents of the two closed operations to consider Value Financial as their HUD sponsor.
“In addition to traditional HECMs, we offer the 5.56 percent fixed rate,” Value Financial’s solicitation said.
In addition to mortgage brokers and banks, Lone Oak Fund LLC is soliciting attorneys and accountants for its commercial bridge lending programs. The California lender, which reports more than $600 million in originations since launching in 2003, said its programs are funded by its hundreds of high net worth members.