“We actually work a lot with mortgage brokers to get deals financed,” he said. “We are just one more option that mortgage brokers can use to get loans for their clients.”
Marc Savitt, the president of the National Association of Independent Housing Professionals, echoed Vetter’s sentiments, adding that anything that offers more resources and helps people get into homes is a good thing. “I’m all for more sources that are out there to help people get into homes and refinance their mortgage.”
However, Savitt does suggest doing a little researching beforehand.
“There’s pros and cons to this [for mortgage brokers],” Savitt said. “It’s easier for somebody who may have difficulty getting credit through normal channels and for someone who needs financing quickly. However, we don’t know how the Consumer Financial Protection Bureau (CFPB) feels about this right now. [There’s a] possibility of regulation.”
Vetter said that Money360 only provides commercial loans, so CFPB regulations do not apply.
Other P2P companies that do provide residential mortgage loans include Social Finance (SoFi)
and National Family Mortgage
, who focuses on lending between relatives.
SoFi has considered some CFPB qualifications. At least half of their mortgages will be seen as non-qualified mortgages, as the debt-to-income ratio of their borrowers exceeds the CFPB’s 43% threshold, according to American Banker.
Click to continuing read about how to make sure your P2P loan is compliant.