Bankers Portfolio LLC has teamed up with an aggregator to launch a correspondent channel that will purchase FHA-insured Hope for Homeowner loans on a servicing-released basis.
BPLLC and its partner — which it would not name — will provide liquidity for not only H4H loans, but the new FHA 'Short Refinance' option that went into effect last month.
Both programs are designed to refinance underwater conventional mortgages after investors write down the principal amount of the original loan.
The Irvine, Calif.-based BPLLC has been working with lenders to originate and securitize H4H loans since February but without much success.
Joel Harrison, director of business development for the company, said he hopes the new program will open the "floodgates" for these FHA H4H and Short Refi loans.
BPLLC has lined up investors to buy the end notes.
