Reno loan processing -- simplified

by Ryan Smith16 Mar 2016
Renovation loans can be a bit intimidating, both for clients and for originators unfamiliar with the process. But with reno loans becoming more and more common, originators are seeing a need to add these valuable products to their toolkit. Fortunately, there are resources out there to help.

“Years ago, some realtors would say, ‘Ugh, FHA financing is so hard to find,’” said Shaun Hamman, executive vice president of wholesale and correspondent sales at American Financial Resources. “Whereas now, it’s perceived as being a normal transaction. It’s not seen any differently than anything else. … That’s the goal of not only us, but of any client going through the process.”

AFR, the number-one BTO renovation lender in the country, helps originators get a handle on renovation loans through extensive educational services. The company also makes the loan process easier by handling the complete loan disbursement. The company has also introduced a service that takes the headache out of processing construction loans.

“Anytime you add a product that requires specialized training or knowledge, you don’t want to insert a process,” Hamman said. “At American Financial, we kind of eliminate that issue. We have a service called on-demand processing.”

The process is simple. The loan officer originates, discloses and uploads the required documents. Then the AFR team takes over all the way through funding, keeping in constant contact with the originator during the process. And originators can decide whether to use the service on a loan-level basis.

“We will process and handle any of your loans, but in particular a lot of lenders utilize us not only for our expertise in the marketplace, but for our expertise in processing and closing construction loans,” Hamman said. “That allows us to have our specialized and trained processing staff handle these loans.”

And that makes life easier for mortgage firms that are new to the renovation loan game.

“The processors at the companies enjoy it, because they can work on the files that they’re accustomed to and focused on instead of something that’s really outside of their comfort zone,” Hamman said. “Our on-demand processing really allows us to work with those individual clients.”
 

Poll

Is TILA-RESPA a good or bad thing long term?