Mortgage Lenders Roll
Out 3 Percent-Down Loans at Breakneck Pace
The quickness with which lenders have adopted 3 percent down-payment mortgages has been a nice holiday gift for the mortgage industry as well as home buyers. Lenders are able to get the product out there faster because larger numbers of them are selling loans directly to Fannie Mae and Freddie Mac instead of to aggregators or wholesale lenders that then attach their own extra guidelines -- called overlays -- to loan requirements. Also, the qualified mortgage rule has made it easier for lenders to assess quality control, underwriting, and decisions to bring products to market. Still, the mortgage industry will need to make consumers aware that low-down-payment loan products are available in order to take full advantage of the opportunity. "If you want to push it, market it, and get it out there, I think you should absolutely be able to increase your business if you market it to your clients and real estate agents and everybody else," says Michael Deery, president of San Diego-based mortgage brokerage Citywide Financial.
From "Mortgage Lenders Roll Out 3 Percent-Down Loans at Breakneck Pace"
American Banker (12/26/14) Finkelstein, Brad
The quickness with which lenders have adopted 3 percent down-payment mortgages has been a nice holiday gift for the mortgage industry as well as home buyers. Lenders are able to get the product out there faster because larger numbers of them are selling loans directly to Fannie Mae and Freddie Mac instead of to aggregators or wholesale lenders that then attach their own extra guidelines -- called overlays -- to loan requirements. Also, the qualified mortgage rule has made it easier for lenders to assess quality control, underwriting, and decisions to bring products to market. Still, the mortgage industry will need to make consumers aware that low-down-payment loan products are available in order to take full advantage of the opportunity. "If you want to push it, market it, and get it out there, I think you should absolutely be able to increase your business if you market it to your clients and real estate agents and everybody else," says Michael Deery, president of San Diego-based mortgage brokerage Citywide Financial.
From "Mortgage Lenders Roll Out 3 Percent-Down Loans at Breakneck Pace"
American Banker (12/26/14) Finkelstein, Brad
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