LoanStream Mortgage has announced that it launched its correspondent-lending channel as the market for prime loans continues to dwindle.
"When things get tough in the market, we look to capitalize when others are consolidating and use that time to grow in unique ways," LoanStream Chairman and CEO Rabi Aziz said.
LoanStream said the channel is part of a natural progression for the company. The company is not new to the non-prime lending market, having written its first programs in 2013 and offering them through its wholesale and retail channels.
"We believe there is at least a 12-24 month period where other bankers could use our specialty services to launch their own non-prime divisions. If we help them grow through non-delegated correspondent services, we hope to keep them, down the line, when they are ready to go delegated," LoanStream President Lina Colon said.
"We are taking a very hands-on approach with our sellers. With average loan sizes over $600,000, sellers don't want to risk having un-saleable loans on their warehouse lines. It is very important to train each seller individually, helping them through their first loans with extra time and attention. In fact, we offer optional services such as LSM preparing the CD/Docs initially," LoanStream COO Serene Vernon said.
Additionally, LoanStream said it has released its new LoanStream Select credit grade for non-prime products.
"LoanStream Select, the pinnacle of pricing, is meant to reward high-quality borrowers that don't fit traditional lending products but deserve better rates than non-prime currently offers," said Bryan Filkey, head of capital markets and non-prime lending and creator of the credit grade. "We recognize the need for strongly priced non-bank products in the TPO market and are determined to fill that void for our customers with great rates and exceptional service."