Responsible loans for responsible borrowers

by Scot Kersgaard27 Apr 2016
The dream of a chicken in every pot and a car in every garage pretty much requires that people have a kitchen to use the pot in and a house to attach the garage to – and that is exactly what lender Carrington Mortgage Services, LLC is trying to make happen. Incidentally, Carrington’s Wholesale Division recently added conventional loans among its portfolio of products, ensuring the company is able to provide a wide range of loan choices across the entire market to a more diverse range of customers.

“We want to help borrowers get into the homes they deserve,” said Carrington Mortgage Services’ Mortgage Lending Division Senior Vice President and National Sales Director Rey Maninang during a break from manning the Carrington booth at the Rocky Mountain Mortgage Lenders Expo held in Colorado in April.

He said there is a lot of pent up demand for homeownership among people with a range of FICO scores, in a market that has not been well served since the crash of the prior decade. He said Carrington offers loans for borrowers with credit scores ranging from 550 up to perfect scores of 850.

Maninang said Carrington sends their sales teams to about 50 tradeshows a year, with him personally attending approximately a fourth of them. “Tradeshows are great for meeting our regional and local brokers, building our brand, and introducing new products to various communities,” he said.

Carrington originates only conventional and government insured loans, and does not currently offer adjustable, interest-only mortgages or mortgages with balloons. “We follow the parameters of HUD or Fannie/Freddie to put people in homes,” he added.

Carrington has had in production its MyLoanDetail™ borrower education program for over a year. The purpose is to walk every customer through the details of their loan before they close, in order to ensure that there are no surprises later. He said that during the bubble that preceded the financial crisis, many borrowers really didn’t know the terms of their loans.

With MyLoanDetail™, he said, borrowers have to acknowledge that they understand the details of their loan, that they know their interest rate, payment,  etc. “It protects us, it protects borrowers and it protects originators,” Maninang said.

“It’s just responsible lending,” he said.


Should CFPB have more supervision over credit agencies?