Platinum mortgage program combats cumbersome financial assessment process
In 2014, the Federal Housing Administration released updated guidelines for underwriting reverse mortgage loans, instituting a financial assessment of prospective borrowers that required a much deeper dive into a borrower’s credit history than previously required.
The goal was to reduce the likelihood of default by assessing a borrower’s financial status and history to determine their “ability and willingness” to fulfill the obligations of the loan. The result was a long and time-consuming endeavor for home equity conversion mortgage (HECM) processors and underwriters, and for borrowers.
But now, the FHA has taken steps to streamline the financial assessment process for lenders, releasing updated guidance recently that specifically approves the use of third-party verification – or TPV – to collect a borrower’s financial information.
If anything, the FHA’s reversal of guidance is a testament that many mortgage lenders, like Angel Oak, have been fighting to reduce the cumbersome process in applying for a mortgage. Angel Oak’s new Platinum Mortgage Program is a prime example.
With mortgage rates recently falling, now’s the time to strike at the opportunity to usher in new home buyers to boost business for borrowers, home sales and to refinance the housing market. U.S. mortgage rates fell again this week, declining to a level not seen in a year, according to Freddie Mac. The 30-year fixed mortgage averaged 4.37 percent for the week ending Feb. 14, down from 4.41 percent the previous week. A year ago, mortgage rates stood at 4.38 percent.
“The combination of cooling inflation and slower global economic growth led mortgage rates to drift down to the lowest levels in a year,” said Sam Khater, Freddie Mac’s chief economist. “While housing activity has clearly softened over the last nine months and the lingering effects of higher rates from last year are still being felt, lower mortgage rates and a strong job market should rekindle demand for the spring home-buying season.”
Angel Oak Mortgage Solutions Can Help
Our Platinum Mortgage Program is a competitively priced product aimed at “just missed” borrowers that can help you grow your business. Close more loans than ever and give Jumbo mortgage borrowers the great news that you have an aggressively priced option that could help them realize the home of their dreams.
ABOUT ANGEL OAK MORTGAGE SOLUTIONS
Angel Oak Companies is an industry leader in delivering innovative mortgage credit solutions. Through our integrated platform, we deliver solutions across asset management, mortgage lending and capital markets.
Angel Oak Mortgage Solutions offers a breadth of alternative lending products to allow our clients to grow their business and better serve their customers. We re-connect qualified home buyers with the investor community to create a win/win/win for the borrower, originator and investor. As a highly entrepreneurial organization, we are able to quickly adapt to the needs of our clients and embrace a strong service-based culture.
Angel Oak Mortgage Solutions currently offers alternative correspondent mortgage lending services across Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, North Dakota, Oklahoma, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.