With the big drop off in refinancing, lenders are beginning to realize there is a whole world of would-be borrowers who have been unable to find financing for their deals -- business they can address to offset lost production. And that could mean more business for the real estate professionals who serve those borrowers. 'The game has changed' According to Jamie Billingham of Angel Oak Mortgage Solutions, an Atlanta-based lender active in 35 states, 110 million people have credit scores below 620, which makes them all but ineligible for “agency” loans purchased on the secondary market by either Fannie Mae or Freddie Mac. That translates into “$150 billion out there in potential business,” Billingham said at the annual Regional Conference of Mortgage Bankers Associations in Atlantic City earlier this week. “There’s definitely a need.” Angel Oak bills itself as an alternative lender whose products fall in the gap between tight Fannie-Freddie guidelines and hard mo...
- There is a whole world of would-be borrowers who have been unable to find financing for their deals that lenders are beginning to notice now that mortgage rates are rising and the refinancing market has dried up.
- Providing jumbo loans, non-prime loans, loans to investors and foreign nationals, investors and even loans for recipients who intend to build their own homes are some of the new ways lenders are exploring the changing market.
Faster. Better. Together.
Inman Connect San Francisco, Jul 16-20, 2018