Hispanic Correspondent JV Launched

The Hispanic National Mortgage Association has enlisted Deutsche Bank as a joint venture partner in a new correspondent bank that will purchase low-downpayment mortgages made to Hispanics and other immigrant borrowers.Based in San Diego, the new HNMA Funding is jointly owned and capitalized by HNMA and Deutsche Bank. The company said its programs will enable lenders to offer interest rates "significantly lower" than the subprime rates many Hispanic borrowers have historically been offered. "By creating a new liquidity vehicle for mainstream lenders, we are addressing one of the major impediments to Hispanic homeownership and demonstrating our commitment to this market and our willingness to accept and retain credit risk," said HNMA Funding chief executive Leonardo Simpser. HNMA recently unveiled a new automated underwriting system that is specifically calibrated to approve loans to Hispanic and immigrant borrowers with little or no traditional credit history, as well as applicants who don't have a Social Security number -- but do have a Taxpayer Identification Number.