Category Archives: Lending

[LISTEN] Regtech defined with Craig Focardi, senior banking analyst at Celent

For our inaugural regtech podcast series, sponsored by ComplianceEase, HousingWire Editor-in-Chief Jacob Gaffney interviews Craig Focardi, senior banking analyst at Celent.

While regtech is a relatively new concept in the mortgage industry, it has already gained a great deal of traction in other parts of banking and financial services, yet remains poorly defined. Focardi explains what makes regtech different from plain old mortgage tech and how you shouldn’t be afraid to make the leap into adopting new technologies.

Focardi also explains why regtech has been slow to make inroads in the mortgage space. And, talks about the biggest technical obstacles that must be overcome for regtech to make a difference in the mortgage space. Listen and enjoy!


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Mortgage industry increases focus on jumbo loans amid rising home prices

Several players in the mortgage industry are increasing their focus on higher loan amounts for residential home buyers as home prices continue to increase.

The median price for a home in California, for example, recently reached a new high of just over $600,000, and five counties in the Bay Area are even seeing a median home price of more than $1 million.

Given these rising home prices, it comes as no surprise that some companies are beginning to focus more on their jumbo loan offerings.

Verus Mortgage Capital, a correspondent investor that offers residential non-prime lending solutions, recently announced it increased its loan amounts to $5 million for several of its non-QM programs and higher loan-to-value ratios for interest-only loans.

Here are the programs that will see an increase in loan amounts:

  • Investor Solution Full Documentation, Self Employed and Foreign National programs, from $2 million to $5 million, starting at $75,000. 
  • Credit-impaired borrower loans from $2 million to $5 million, starting at $100,000, through the Credit Ascent program.
  • Higher-balance loans offered with alternative documentation for self-employed individuals from $3 million to $5 million, starting at $150,000 through the Prime Ascent program. Prime Ascent interest-only loan LTVs increased from 80% to 85%.

“At Verus Mortgage Capital, we’re dedicated to building the non-QM market,” VMC President Dane Smith said. “We are committed to offering lenders flexible funding options for underserved borrowers who don’t fit into the conventional profiles.”

“Right now, non-QM lending is a huge opportunity for lenders to grow their businesses and provide solutions to fill a very real void in our industry,” Smith said.

And Eave, a jumbo mortgage lender in Colorado, also announced it launched a new suite of products for home loans up to $20 million.

The products are aimed at helping home buyers avoid the need to cash out investments to win bids on houses, the company explained. Eave announced it fully underwrites buyers up front, enabling homebuyers and their real estate agents know exactly how much home they are approved for and can act with the same speed as cash buyers.

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HousingWire survey: Are lenders adopting digital technology?

We all know HousingWire readers are some of the most savvy lenders in the industry, that’s why it came as no surprise when a survey conducted jointly by HousingWire and Maxwell, a winner of HW’s Tech100 for the second straight year, showed only 14% of lenders answered they do not have a digital mortgage application for borrowers.

A closer look showed which types of lenders were the most likely to not have online apps, as shown in the infographic below.

Also not surprising was that 22% of lenders who cited their business was made up of only themselves did not have a digital mortgage application, compared to only 9.5% of lenders in companies with 51 to 100 employees.

However, after 100 people, that number once again begins to climb. For companies with 101 to 500 employees, 11% said they do not have an online mortgage application, and 18% of respondents from companies with more than 500 employees answered the same.

But a digital mortgage application is just the beginning to submerge borrowers into the full digital mortgage experience. The infographic below also breaks down the numbers for lenders who use a borrower portal.

Overall, about 36% of lenders do not currently use a borrower portal, check out the details below.

HW/Maxwell survey – the digital process by Kelsey Ramirez

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