New eClosing Platform

January 26, 2017

The mortgage industries first comprehensive eClosing technology has been created in Massachusetts, which included both lender and closing/settlement agent documentation.

Unlike previous similar technologies, this Total eClose solution is a single-source platform that includes all the components needed to facilitate a completely paperless closing.  Once the eClosing process begins, documents needing notary acknowledgement will automatically be grouped by the system and electronically executed in the presence of the notary.

This technology’s solution includes all of the critical components required to execute a fully digital eClosing transaction.  This software features eSignature, eNotary and MERS eRegistration capabilities.  The system also automatically stores all data and documents within a secure eVault designed to make investor eDelivery simple.  The platform creates a fully-compliant eClosing process that guides users through every step.  It logs all activities and creates an irrefutable audit trail.

This platform maintains detailed evidence of TRID compliance from the original loan app and Loan Estimate, to delivery of the final Closing Disclosure.  The eVault stores all data, compliance determinations, calculations and documents for proof of compliance.

As great as this new technology could be, complications are likely to arise.  During the initial “learning” faze, Right House Capital is here to help should you have any problem loans.  We have the needed outlets to help facilitate the liquidation of your mortgage loans on the secondary market.

If you ever have a loan with any of type of problem…. Whether that be Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Scratch and Dent Mortgages, Scratch and Dent Pools, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, or Distressed Assets… Let RHC put your mind at ease.

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

 

High LTV Refi’s

December 14, 2016

The Federal Housing Finance Agency (FHFA) has announced that Fannie and Freddie are getting ready to offer new refinance options aimed at borrowers with high LTV ratios.

According to the FHFA, this new streamlined refi offering is more targeted than the current HARP program.  It will not have eligibility cut-off dates connected and it will allow for the ability to use the program more than once.  However, Borrowers with an existing HARP loan will not be eligible for the new offering unless they have refinanced out of HARP using one of the traditional refinance products offered by Fannie and Freddie.

The refinance offering will be available around October of 2017.  Until then the bridge will be gapped with the HARP program through Sept 30, 2017.

“Providing a sustainable refinance opportunity for high LTV borrowers who have demonstrated responsibility by remaining current on their mortgage makes financial sense both for borrowers and for the GSEs,” said FHFA Director Mel Watt. “This new offering will give borrowers the opportunity to refinance when rates are low, making their mortgages more affordable and thus reducing credit risk exposure for Fannie Mae and Freddie Mac.”

This is all good news and gives everyone in the mortgage industry confidence that help is coming for high LTV borrowers.  But as always, when new programs are introduced, there is always a learning period where mistakes are made.  That is where Right House comes in….

If you ever have a loan with any of type of problem…. Whether that be Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Non-Prime Loans… Let RHC put your mind at ease.

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

Non-Prime Securitizations

November 16, 2016

Over the last few years Non-Prime mortgage products have been creeping into the market.  That being said, the total volume still is very low when compared to traditional agency mortgages.  One of the reasons for this is the wave after wave of refinancing.  Loan originators have little to no incentive to adopt new products when they can simply rely on refi volume.   And for years people have thought that refinancing would slow down, but we are continuously surprised by lower and lower rates.  Although, I think it is safe to assume that we will never see negative rates… so this refi volume would have to slow down eventually.

On the other hand, there is a growing investor demand for non-prime mortgages.  This is beneficial to lenders that need to free up capital or remove risk from their books.  This happens through the residential mortgage-backed security (RMBS).  Investor demand for these non-prime RMBS is growing faster than securitizing agents can create the bonds.  This is critical because it lets purchasers of loans know that the market is there for them to increase securitization volume.

Eventually, the pace of non-prime securitizations will catch up with the demand from investors and the supply of loans on the market.  The question is will lenders be able to keep up with the demand once we reach that point?  People are speculating that when securitizations catch up, the majority of refi volume will be in the past.  At that point, lenders will have no choice but to expand their portfolio to include non-prime products.

Even though these obstacles exist, the non-prime mortgage market has seen steady growth.  There have been 7 non-prime securitization deals in the last year.  Now that the link between investors and borrowers has been completed, and proven to be successful, volume should start to rise significantly.  Furthermore, as these deals start to get rated, investor acceptance and accessibility will expand even further.

This is good news for mortgage lenders.  As mentioned, the refinance boom will come to an end.  But these Non-Prime securitizations could be a beneficial alternative to refi volume declines.  Although, anytime new products are introduce there is an inherent risk for more mistakes.  From simple errors to loans in foreclosure… Right House Capital is here to help you liquidate them.

If you ever have a loan with any of these type of problems ….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Non-Prime Loans… Let RHC put your mind at ease.

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

Changes in the Workforce

October 18, 2016

The workforce is America is in the midst of a change.  What is referred to as the “gig economy”- ever increasing number of independent contractors – is infiltrating the labor sector.  These independent contractors or contingent workers are those with temporary jobs.  They do not have implicit or explicit contracts for employment.

The number contingent workers has been increasing over the last 20 years.  On top of that, 42 percent of executives state that they will continue to use more and more contingent workers over the next five years.  These type of jobs are showing no signs of disappearing and W2 income is becoming less and less accurate in terms of proving income.

It is already difficult for homebuyers to qualify under the QM guidelines.  These contingent workers are not able to meet the qualifications needed for a home loan under QM requirements.  However, despite not being able to present W2 income, these workers are otherwise qualified for a mortgage.  The economy is just not adapting to this change and these potential homebuyers are being left in the dark.

Recently, the mortgage industry has relied on tax forms for proof of income rather than taking a holistic view of the borrower’s financial situation.  But if mortgage brokers want to remain competitive in this changing economy, they will have to come up with new programs to verify borrower income rather than the normal W2 income.

Many lenders in the non-agency space are starting to capitalize on this new trend.  One solution is to allow potential homebuyers to use 24 months of bank statements in order to qualify.  In these type of programs, no tax returns are required and credit scores can be as low as 620.

Overall, if lenders want to stay relevant in this changing environment, they will need to evolve their programs in order to cater to this large percentage of the US workforce.

Any time new programs are introduced there is the potential for mistakes and high risk.  If you have a problem loan, whether it is performing or not, Right House Capital is here to help.  We can get you the top dollar the market will bear for any of your potential problem loans.

So if you ever have a loan with any of these type of problems ….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… Let RHC put your mind at ease.

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

Loan Defect Index

September 14, 2016

The quality of mortgage originations seem to be reaching a new level of excellence.  The First American Loan Application Defect Index had 73 level rating in May.  This is a 2.7 percent dip from April and a 9.9 percent drop from May of 2015.

In June, the Defect Index for refinance transactions declined 3.1 percent month-over-month, and was 10 percent down from a year ago.  The Defect Index for purchase transactions dropped by 2.4 percent month-over-month and 11.4 percent year-over-year.

“The Defect Index continues to decline, reaching a historically measured low point,” said Mark Fleming, chief economist at First American. “Apart from the increases in risk in 2013 and early 2015, the Defect Index has been consistently trending lower since inception.”

The five states with the highest year-over-year increase in defect frequency for May were North Dakota (19.3%), Maine and Missouri (tied at 10%), Utah (5.2%), and Oklahoma (4.7%).  St. Louis had the highest metro area year-over-year defect frequency increase at 15.9 percent, with Salt Lake City coming in at a distant second with 4%.

“When rates begin to rise consistently higher, which is now less likely in 2016 given Britain’s decision to exit the EU, there should be less refinance activity relative to purchase loan applications,” said Fleming.  “We expect this relative shift away from lower risk refinancing to higher risk purchase loans will put upward pressure on the overall risk indices.  More generally, because the indices don’t hold the ‘mix’ of refinance and purchase applications constant, the overall index measures the underlying risk trend, but also any change in the mix.”

Overall, we are seeing a positive trend downward in regards to default rates.  But at least some part of that could be effected by lower rates and thus higher percentage of less-risky refinance loans.  Whichever way the trend goes, RHC is here if you run into a loan that defaults or simply have a performing loan that you need to sell on the secondary market.

So if you ever have a loan with any of these type of problems ….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… Let RHC put your mind at ease.

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

SAFE Act

August 19, 2016

The House of Representatives unanimously passed HR 2121, the SAFE Transitional Licensing Act.  This was introduced by Rep. Steve Stivers.  It is designed to amend the SAFE Mortgage Licensing Act of 2008 by providing a temporary license of 120 days for registered loan originators who are either moving from a financial institution to a state-licensed non-bank originator or are moving interstate to a state-licensed loan originator in another state.

“The SAFE Act inhibits job mobility and puts independent mortgage lenders at a considerable disadvantage in recruiting talented individuals” said Stivers.  “Rather than leaving a job on a Friday and starting a new job on a Monday, as most of us do, a loan officer who moves from a federally-insured institution to a non-bank lender must sit on their hands for weeks, even months, while they meet the SAFE Act’s licensing and testing requirements.  This is despite the fact that they have already been employed and registered as a loan officer.  This is simply unfair.”

However, this bill is not supported by everyone.  The NAMB – The Association of Mortgage Professionals is against the bill.  The president of NAMB, Rocke Andrews, believes it now needs a companion bill in the Senate that will be reconciled with the House Bill and sent to the President.

Andrews said, “The SAFE Transitional Licensing Act attempts to solve the problem of loan originators having to be licensed before they can originate loans in a new state licensed company moving from a federally-registered position or a state licensed originator attempting to get licensed in a new state.  The solution provided by this bill is to give the new originator a 120-day period after a background check and credit check to originate loans without a license.  It would modify the SAFE Act which requires all state-licensed loan originators to be licensed by the state in which the loan collateral is located.”

“The bill is very vague and does not answer questions that immediately come to mind.  Who is the loan originator of record on the file during the interim period?  What happens to these loans if the originator never becomes licensed?  What happens to the company if they have a closed loan with no licensed loan originator associated with it?  When a current licensed LO seeks a license in another state do they maintain their existing license?  What prevents them from applying for a license in another state, do their one loan and then not complete the process?” states Andrews.

Andrews goes on to say that the purpose of the SAFE Act was to eliminate unlicensed activity and require a licensed loan originator on all files to make sure there is a responsible party at risk of losing their license.  This bill requires a transitional period with no ability for state regulators to be more stringent.

“Typically, the need to have a transition period is due to the process of becoming a state licensed loan originator.  Many banks maintain the NMLS registration for their employees.  When the employee goes to the NMLS site to pursue a state license the notice goes to their employer, who would then terminate their employment.  The issue then becomes how does the originator earn income while getting licensed, as they have no job or ability to earn in the meantime.  A better solution to this is to make the NMLS process private and ask the applicant who to notify of their milestones.  This would allow the prospective originator to get their license while still employed at the bank, thereby eliminating any need for a transition period.  NMLS allows them to keep the state license inactive while working at a federally chartered institution” stated Andrews.

The HR 2121 also allows for existing state-licensed originators who wish to be licensed in another state this transition period.  The problem is working loans in a new state without knowledge of that state’s laws.  They can begin the 120 day period as soon as the application is filed with the state.  They could then do the one loan and never take the required courses or exams.

Another issue is how many of these transition periods are allowed?  When the first transition period expires, can the LO begin a new 120 day period?  Can they have several different state’s transition periods at one time?

This type of thing is exactly what the SAFE Act was trying to eliminate.  Do consumers want their mortgages being handled by someone that has not fully learned the laws and regulations of the state?  Wasn’t this the cause of a lot of the problems during the period prior to the mortgage crisis?

Different sides will always be arguing write and wrong.  As we know this mortgage environment is ever changing.  Which makes it difficult to keep up.  So at any time if you have a loan that has a mistake and you can’t sell it to your normal investors…. RHC is here to help.

So if you ever have a loan with any of these type of problems ….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… Let RHC put your mind at ease.

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

Product Diversification

July 6, 2016

The late economist Herbert Stein said that, “If something cannot go on forever, it will stop.”  Time and time again, analysts have said that the end of the refinancing boom was upon us.  Up until now they have been proven wrong.  That being said, the mortgage refinancing won’t go on forever.

Even though the Federal Reserve recently instituted the first rate increase in nearly a decade, interest rates have continued to fall even lower.  This is because market volatility early in the year lead to the Fed issuing more dovish comments on the pace of future increases.  The resulting drop in mortgage rates has sustained the refinance party yet again.  However, the Fed will have to embark on a path of renormalization at some point.  When they do, mortgage rates will drift above the refinance threshold.  At that point in time, we’ll likely see an abrupt drop off in refinance volume because the math will no longer make sense for borrowers.  The volume will dry up as rates start to reverse from their 34-year downward trend from the high teens of the early 1980’s.

Lenders that rely on refinancing have to come up with a way to bolster their mortgage pipeline in order to replace the loss in volume.  The best way to do this is to diversify into non-agency mortgage products.

Diversification is risk management in layman’s terms.  It is simple, if you rely too heavily on one source for volume (in this case refinancing) and that source goes away, you’ll be left struggling to fill the void.

Since the housing crisis, lenders have had their hands tied since there were limited options to issue loans not eligible for sale to the government-sponsored enterprises (GSEs).  However, within the last few years there has been a reemergence in the non-agency market.  Now, there exists a diverse mortgage product mix on the market that can meet the needs of many borrowers.

Here are some examples of non-agency products available:

-          Borrowers who have experienced a recent credit event, such as a foreclosure or short sale

-          Borrowers who don’t have W-2 income and instead rely on income from investment properties.

-          Self-employed borrowers whose tax returns may not necessarily reflect their true income.

-          Foreign nationals who don’t have credit in the US.

-          Borrowers who have significant savings, but limited income.

Lenders should start to take advantage of new products in order to survive when the low-refi world arrives.  With a wider product offering, they can increase their reach to a subset of buyers that are underserved at the moment.  If all they offer is the traditional loans, they will be stuck competing with the masses in an ever shrinking pool of borrowers.  Furthermore, they will run the risk of their referral partners jumping ship to another provider that does offer these new products.

These new products are good news for lenders that look ahead to the inevitable changes in the mortgage industry.  But with new products, there will always be the problem of new mistakes.  Rest assured in this ever changing environment that we call the mortgage industry, Right House is here to help.  Any new problem loans that you come across we will be here to help mitigate your losses.

So if you ever have a loan with any of these type of problem loans….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… RHC is here to help

For more information or if you have any problem loans you want to sell today.  Contact Andrew Zale at 502.365.5632.

 

Good News : TRID

June 8, 2016

The Consumer Financial Protection Bureau (CFPB) has taken complaints and concerns into consideration from the financial services industry in regards to the TRID rule.  Better known as the “Know Before You Owe” rule, the CFPB plans to seek more input and make updates to this federal policy.

CFPB Director Richard Cordray admitted that this rule “poses many operational challenges” and said that the agency was aware of how lenders, mortgage professionals and other housing-related businesses were being impacted by the rule.

“We also believe that there are places in the regulation text and commentary where adjustments would be useful for greater certainty and clarity.” Cordray wrote. “Accordingly, we have begun drafting a Notice of Proposed Rulemaking (NPFM) on the Know Before You Owe rule.  We hope to issue the NPRM in late July and look forward to your comments on it then.”

Cordray also noted that the CFPB would have one or two meetings in the later part of May or early part of June to get further input on updating the rule.  Although, he did not offer any specific locations or provide insight on what was open for discussion.

The president-elect of The Association of Mortgage Professionals (NAMB), Fred Kreger, said “NAMB applauds the CFPB for listening to feedback from stakeholders like NAMB regarding the Know Before You Owe mortgage disclosures.  We are mortgage loan originators who listen and counsel our clients daily on the best product that is in their best interest.  When we see that there can be better ways to inform consumers and the process itself, we are happy to share that with the CFPB.  We look forward in offering further dialog with the CFPB to assist them in their mission of helping consumers understand the process.”

Pete Mills, senior vice president of Residential Policy and Member Services for the Mortgage Bankers Association (MBA) also provided his insights.  “MBA is very pleased with CFPB’s letter and believes the approach laid out should provide a swift path to issuing a final rule that will give lenders, the secondary market and consumers the clarity and consistency of disclosures the market needs. In the meantime we appreciate that the Bureau’s ‘diagnostic period’ for the Know Before You Owe rule will continue to accommodate good faith compliance efforts.  Finally, we look forward to continuing to work with the Bureau on this and other issues in hopes of protecting consumers and strengthening the real estate finance industry.”

The CEO of the American Bankers Association (ABA), welcomed Cordray’s offer as well.  “We appreciate Director Cordray’s responsiveness to our concerns about the CFPB’s Know Before You Owe rule,” he said in a statement.  “The agency’s interim steps and guidance efforts are welcome, and we agree that several issues will be best resolved in the rule-making process that is being initiated.  We are particularly pleased that the notice of proposed rulemaking is on a fast track, which will accelerate and strengthen strong compliance regimes.  Many of the elements the industry identified for clarification or amendment were developed in ABA’s compliance working group meetings, and we look forward to the opportunity to continue sharing banker feedback with the CFPB.”

The American Land Title Association (ALTA) had this to say about the CFPB’s consideration.  “The complexity of TRID makes it difficult for mortgage originators and secondary market investors to determine if they have complied with this massive regulation.  ALTA will use this opportunity to work with the CFPB to ease this uncertainty for our members.”

“Wolters Kluwer appreciates the CFPB’s willingness to provide additional clarity and formal guidance to the TRID rule,” stated Art Tyszka, senior director and general manager of Mortgage Lending at Wolters Kluwer.  “As Director Cordray shared in his letter to industry associations and their members, there have been operational challenges with the new disclosures caused by differing interpretations of specific requirements.  We are confident that if the informal guidance provided to us by the bureau is formally incorporated it will reduce the operational challenges and improve the consumer’s experience of shopping for and obtaining a mortgage loan.”

This is great news for everyone that has been struggling with TRID.  After these guidelines are explained and hopefully simplified, the mortgage industry as a whole will be better off.  In the meantime, as things are still a little unclear, Right House Capital is here to help with any of your TRID issues, along with all other problem loans you may come across.

So if you ever have a loan with a TRID issue or any of these type of problem loans….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… RHC is here to help

Call Andrew Zale today to learn more!  502-365-5632

 

Mortgage Repurchase Down 95% Since Peak in 2010

May 11, 2016

Over the years, improvements made by lenders to their loan process and updates to the government-sponsored enterprises’ reps and warrants policies have resulted in single-family loan repurchases dropping 95% from 2010.

Repurchases, or buybacks, occur when a loan buyer (Freddie Mac in this case) asks a lender to buy a loan back due to various deficiencies in the underwriting process.

According to Chris Mock, Freddie Mac’s vice president of single-family quality control, completed repurchases have dropped from a peak of $4.2 billion in 2010 to about $400 million in 2015, which is a decrease of 95%.

The news is entirely as shiny as it appears, as Mock notes a “caveat” about the falling number of repurchase requests.

“Many repurchases in a given year relate to loans originated in earlier years and repurchases of large groups of legacy loans were avoided as a result of some post-crisis settlement agreements,” Mock writes. “That said, the trend is clearly positive and there are several reasons that explain this.”

Mock writes that the downward trend is a positive indication for lenders, servicers, taxpayers, borrowers and Freddie Mac.

“When seller/servicers sell Freddie Mac loans with greater certainty, they are more likely to make loans that take advantage of the full extent of our credit box,” Mock writes.

Mock also pointed out that this trend may continue as the GSE implements its Loan Advisor Suite.  It is a flexible, end-to-end loan delivery solution that executives with the GSE say will increase lender efficiency and provide earlier insight into reps and warrants relief.

In interviews with HousingWire, other executives with Freddie Mac spoke about the expected impact of the Loan Advisor Suite.

“We think it’s going to a game-changer for the industry,” Chris Boyle, senior vice president and head of single-family sales & relationship management at Freddie Mac, told HousingWire in an interview. “I think it’s our journey to automation and we’re happy to lead the way.”

According to Boyle, the tools will help usher in a new era for Freddie Mac.

“I believe this with my heart and soul,” Boyle told HousingWire. “I’m a veteran of this company and this is a better Freddie Mac and a better housing finance system.”

According to Andy Higginbotham, Freddie Mac’ senior vice president and head of single-family strategic delivery, the new tools are mutually beneficial for lenders and Freddie Mac alike.

Higginbotham said that with this program, Lenders will be able to cure a loan issue during the origination process rather than after closing.  This will help ensure “clean” loans are delivered to Freddie Mac.

With clean loans, comes fewer repurchases. And according to Freddie Mac, that’s a win-win.

This is obviously great and exciting news for Lenders.  That being said, there will undoubtedly always be mistakes and repurchases.  We will never be able to fully eliminate them because the human element is involved.  That is were Right House Capital comes in.  We are happy to hear that Lenders will have fewer and fewer repurchases.  As we always say, RHC hopes you never have to use us, but if you do we are here to make the process as painless as possible.

So if you ever have a repurchase or any of these type of problem loans….Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… RHC is here to help

Call Andrew Zale today to learn more!  502.365.5632

 

Sub-Prime Volume Increases

April 13, 2016

Up until recently, most lenders would not finance mortgages where borrowers had a credit score below 620.  Now, we are in the midst of a shift back to mortgage liquidity equilibrium.  Sub-prime loans have come back to the market within the last 3 years.  Today we are starting to see a surge in these loans that fall outside the restrictive QM guidelines.

In late January, Equifax supported this when they put out a press release from their National Consumer Credit Trends Report…

First mortgage originations for sub-prime borrowers have seen a steady growth throughout 2015.  More than 312,000 new mortgages were originated, totaling $50.7 billion.  This represents an increase of 28 percent in the number of first mortgage originations and a 45 percent increase in the total balances from the same time a year ago.

The majority of that $50.7 billion in volume is attributed to FHA loans, but we are also seeing strong growth in all three silos of the mortgage market: Agency, government, and private.  This growing acceptance of sub-prime within the Agency and government sectors has bled over to the private sector.  This has helped drive notable growth for lenders willing to offer the products and undertake the necessary manual underwrites.

We have been witnessing this growth trend develop first hand in the private sector.  For the full year of 2015, volume was 2.5 times higher than in 2014.  Volume is continuing this upward trend in 2016.  January numbers are nearly triple what we saw in the same month last year.  Projections show approximately $1 billion in originations in 2016.

We will continue to keep an eye on this sub-prime market.  There are sure to be more product developments across the board in 2016 and we expect to see these numbers maintain their momentum moving forward.

This is obviously good news for the mortgage industry as a whole, but these new sub-prime loans will undoubtedly cause an increase in the number of overlays.  This will lead to more and more Scratch and Dent loans.  RHC is here for you if you have any problem loans moving forward.  (Whether those loans fall under any of these categories: Investor Fallout Loans, Distressed Mortgage Loans, Non-Performing Loans, Delinquent Loans, Investor Overlays, Investor Buy-Backs, Scratch and Dent Loans, Foreclosures, Bankruptcies, Short Sales, Discount Loans, Classified Loans, Distressed Assets, or Sub-Prime Loans… RHC can liquidate it!)

Rest easy knowing that the mortgage requirements are loosening and that if you run into any issue, we have your back!

Call Craig Bread today to learn more!  727.498.0290

 

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