Newrez, Pennymac and Rate are rolling out new products that signal a flurry of activity across the mortgage market.
The timing might be coincidental for most of these announcements, but loanDepot's announcement it was
Newrez has title insurance alternative for refis
Newrez, the
The program, Newrez TitlePass, is offered through an affiliate, Avenue 365/Avenue Title Agency. It is available on conventional rate-and-term refis with up to an 80% loan-to-value ratio. The loan also needs to have an automated underwriting approval.
A company website called this a true title insurance waiver.
This gives Newrez somewhat of a differentiator in what is becoming a more competitive wholesale market with the return of loanDepot. United Wholesale Mortgage
On its webpage, Newrez said the broker's advantages in offering this product are
- More compelling conversations with cost-sensitive refinance borrowers
- A unique offering which sets you apart from other brokers
- Fewer title-related conditions and reduced friction in processing
- A faster loan process and improved operational efficiency
The company claimed that 70% of eligible refinance loans would receive the waiver, based on its analysis. The average borrower would save $1,000, with some seeing as much as $2,200.
"Newrez TitlePass enables our broker partners to deliver meaningful borrower savings while also increasing speed and closing efficiency," said Tony Kottenbrock, senior vice president of wholesale lending in a press release. "It's a practical way to reduce closing costs for the consumer, and because it's fully integrated into our platform, brokers can leverage Newrez TitlePass without changing how they already originate loans."
It is offered in 18 states: Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, New Jersey, Nevada, Ohio, Pennsylvania, Tennessee, Texas and Virginia.
It is only for certain low-risk refinance transactions, and its availability may evolve as those risks are further assessed.
"Newrez has developed an excellent program, providing borrowers a low-price alternative to costly and unnecessary title insurance," said Theodore Sprink,
This refinance market being targeted by TitlePass is "extremely low risk, and as the GSE's have already determined, do not require title insurance, particularly in light of there being close to zero consumer title insurance claims and lender buybacks," Sprink said.
He congratulated Newrez for offering this title alternative.
"We believe title insurance will become significantly less important in the future as lenders, Realtors, borrowers and sellers are educated to the innovation, diversification, competition and lower pricing that consumer choice represents," added Sprink.
Pennymac TPO rolls out non-QM product menu
Pennymac's
The company's product suite includes a debt service coverage ratio loan; full documentation products for non-traditional income sources; bank statement mortgages; and asset qualifier/depletion offerings aimed at retirees or high net-worth individuals.
It is also offering written verification employment and 1099 borrower options.
"These solutions are built to recognize the diverse ways modern entrepreneurs build wealth, providing flexible qualification paths without compromising on loan performance," said Nick Pabarcus, managing director and non-QM sales leader in a press release.
Rate JV updates 1% down offering
OriginPoint,
OneDown was first introduced last August. The changes increase the lender paid grant to $6,000 or it gives the borrower an option to take a 1% lender paid temporary interest rate buy down for the first year of the loan. These are in addition to the 1% contribution from the borrower.
"OneDown was designed to give agents and their buyers a meaningful strategic advantage," said Kate Amor, executive vice president of enterprise products at Rate, in a press release. "The enhanced lender-paid grant and temporary buy down options within this product provide flexibility without compromising certainty."
