VA Mortgage Lender NewDay USA made headlines late last year with the news that they were eliminating closing costs for veterans. Now they’re making news again with the bold prediction that the company’s monthly home purchase volume will more than double this year, an increase of up to 150%.
The projected increases are actually due to Operation Home, that no-down-payment program announced in December. The success of the program is expected to lead to a 10 percent increase in overall originations at NewDay USA this year, compared to a projected five percent purchase volume increase across the industry, and a nine percent drop in refi volume, according to the Mortgage Bankers Association.
Rob Posner, Founder and CEO of NewDay USA, expected the program to take off.
“I am not surprised at all due to the many veterans that are renters and want to buy a home. I am very proud of our team and how many veterans we have helped so far with Operation Home. And that number keeps growing,” he said.
NewDay originated $2.3 billion in 2018 after reaching $2.3 billion in 2017. They have invested $2 million per month in a national advertising campaign on the History Channel, Fox, and CNN in support of Operation Home. The success of the program is a real difference-maker in the lives of millions.
“It means that many eligible servicemembers who believed that owning a home may not be possible at this time – come to realize that owning a home of their own is within reach.”
Posner also announced that NewDay has renewed its warehouse facility with BankUnited for $100 million, which brings the total company warehouse commitments to $400 million. These facilities will enable them to keep up with that expected growth.
Through its own training facility called NewDay University, NewDay USA produces a growing team of professionals trained specifically to help military service members and veterans. Posner attributes its Accelerated Underwriting Program and a greater understanding of the background of service members and veterans to the success of Operation Home.
“We are a FinTech lender, so we are heavily utilizing analytics to help our approval ratio for members of the military,” Posner said. “We manually underwrite every single loan, to give veterans with challenges an opportunity to achieve the American Dream of homeownership.”
While every loan at NewDay USA is manually underwritten, the company has found success with leveraging its technology to approve applicants who were denied by other lenders, thus enabling it to increase its VA refinancing volume. NewDay is now applying that same technology to help originate home purchase loans. For many service members, a door to home ownership has been opened.
“We are proud to serve servicemen and women, veterans, and their families so that they have the opportunity to take advantage of their valuable VA Home Loan benefit.”