Wholesalers release new non-compliant offers

As the potential market for mortgage origination shrinks due to rising interest rates, some wholesale lenders are offering products to serve borrowers outside of the compliant footprint.

United Wholesale Mortgage offers a bank statement loan to self-employed borrowers only. Loan limits can be as high as $3 million and borrowers can have a loan-to-value ratio of 90% with no mortgage insurance required. This is an unqualified mortgage product.

This is the first bank statement loan that UWM offers to its mortgage broker clients. And it’s the only specific product for self-employed borrowers, a company spokesperson explained.

“This will give independent mortgage brokers another competitive advantage when it comes to working with non-W2 borrowers,” said a UWM press release.

In January, UWM expanded its non-compliant menu with Jumbo Prime Max.

UWM also announced that it is extending its no-cost assessment for primary home purchase mortgages through the end of April.

Separately, Plaza Home Mortgage’s the wholesale division created DSCR Investor Solutions for investment property lending.

This product offers loan terms of 30 years fixed fully amortized and 40 years fixed interest only, with debt service coverage ratios as low as 0.75%.

Loan amounts can range from $100,000 to $3.5 million with LTVs of 80% and credit scores as low as 620. The types of properties Plaza is willing to lend include single family rental of a unit or planned unit development, two to four units and condominiums. Additionally, the product is available with and without prepayment penalties.

“Our new DSCR offering further expands our non-QM suite and gives our brokers an additional reason to do business with us,” said Jeff Leinan, president of Plaza’s wholesale division in a press release.

Loans will be guaranteed by the unqualified mortgage team. “So clients will be dealing with experienced underwriters who know how to create cash loans,” he continued.

Meanwhile, mortgage fintech Wemlo, subsidiary of Remax which is a sister company to mortgage brokerage franchisor Motto Mortgage, has added non-QM loan processing technology to its services. This includes both DSCR products and bank statements, as well as specialist borrower assistance loans for low credit scores and down payment assistance; and loans for manufactured homes and construction. Capabilities have also been added for the Veterans Interest Rate Reduction Refinance Loan and Federal Housing Administration Streamlining Loan products.

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