We talk underserved borrowers, industry challenges, and solving tough loan problems
We spoke with Rey Maninang, SVP and national sales director for Carrington Mortgage Services, LLC about underserved borrowers, industry challenges and solving tough loan problems.
MPA: What are the biggest challenges currently facing the mortgage industry?
Rey Maninang: The biggest challenge we have today is that the regulatory environment is rapidly changing. Mortgage brokers may be challenged to remain aligned with these changes especially if they don’t have the vast resources provided by a compliance department. Fortunately, there are companies that provide webinars and educational assets to help understand the requirements today.
MPA: Carrington has long championed a strategy of reaching out to underserved borrowers, and the company recently announced that it was reducing its minimum FICO requirements on FHA and VA loans to 500. How does one walk the line between providing opportunities for low-credit borrowers and making safe loans?
RM: We made the announcement in March 2014 that our company would be focusing on providing expanded support and programs for the underserved market. During that time there was a lot of uncertainty about this market.
Fast forward to today, and not only has our portfolio performed, we’ve proven that those who were affected by the crisis and had their credit impacted are, and continue to be, responsible borrowers. We have continued to successfully expand our business with the broker community and offer a realistic option to close loans others can’t.
MPA: It probably takes some thinking around corners to help borrowers with really challenging situations. Are there strategies originators can use to creatively solve tough loan problems?
RM: There are specific underwriting guidelines for the government loan programs that are available to the underserved market. The majority of lenders are adding overlays and conditions that can limit the potential or prevent support for this market. We believe there continues to be significant opportunity for our broker partners and are excited about the growth we and our partners have seen over the past few years.
MPA: When it comes to finding loans for underserved borrowers, do you feel there are any loan programs that most originators either overlook – or just plain don’t know about?
RM: The products right now that, in my opinion, are not getting adequate exposure are those that are meant for homeowners and renters in PDMDAs (Presidentially Declared Major Disaster Areas). The government program, FHA 203(h) program, allows home owners to either purchase a new home or rehab their damaged home, or allows renters to become homeowners with no money down. This government program can assist thousands of Americans who were impacted and help them get back on track.
Related stories:
Regulators to pump the brakes in 2018?
Consumers continue to flock to this mortgage segment
MPA: What are the biggest challenges currently facing the mortgage industry?
Rey Maninang: The biggest challenge we have today is that the regulatory environment is rapidly changing. Mortgage brokers may be challenged to remain aligned with these changes especially if they don’t have the vast resources provided by a compliance department. Fortunately, there are companies that provide webinars and educational assets to help understand the requirements today.
MPA: Carrington has long championed a strategy of reaching out to underserved borrowers, and the company recently announced that it was reducing its minimum FICO requirements on FHA and VA loans to 500. How does one walk the line between providing opportunities for low-credit borrowers and making safe loans?
RM: We made the announcement in March 2014 that our company would be focusing on providing expanded support and programs for the underserved market. During that time there was a lot of uncertainty about this market.
Fast forward to today, and not only has our portfolio performed, we’ve proven that those who were affected by the crisis and had their credit impacted are, and continue to be, responsible borrowers. We have continued to successfully expand our business with the broker community and offer a realistic option to close loans others can’t.
MPA: It probably takes some thinking around corners to help borrowers with really challenging situations. Are there strategies originators can use to creatively solve tough loan problems?
RM: There are specific underwriting guidelines for the government loan programs that are available to the underserved market. The majority of lenders are adding overlays and conditions that can limit the potential or prevent support for this market. We believe there continues to be significant opportunity for our broker partners and are excited about the growth we and our partners have seen over the past few years.
MPA: When it comes to finding loans for underserved borrowers, do you feel there are any loan programs that most originators either overlook – or just plain don’t know about?
RM: The products right now that, in my opinion, are not getting adequate exposure are those that are meant for homeowners and renters in PDMDAs (Presidentially Declared Major Disaster Areas). The government program, FHA 203(h) program, allows home owners to either purchase a new home or rehab their damaged home, or allows renters to become homeowners with no money down. This government program can assist thousands of Americans who were impacted and help them get back on track.
Related stories:
Regulators to pump the brakes in 2018?
Consumers continue to flock to this mortgage segment
