Mortgage applicants with little or no credit histories will be eligible for rock-bottom interest rates under a pilot program announced at the Mortgage Bankers Association Convention in Chicago.Combining alternative methods of credit reporting and scoring with extensive counseling before and after the closing, the program will enable Neighborhood Housing Services of America and its mortgage-lender partners to extend prime loans to buyers who otherwise would have been relegated to subprime rates, if they could have qualified at all. The effort is being underwritten by State Farm, which is creating a $100 million pool that will help some 5,000 homebuyers secure loans at competitive rates. Under the new "Prime-Grade Mortgage Program," NHSA will create a secondary market for loans underwritten with First American's "Anthem" alternative credit reporting and scoring products, which combine supplemental information such as utility bill payments and rental receipts with credit bureau data to build a more complete picture of an applicant's creditworthiness. "By demonstrating these consumers are not higher risk, and by providing lenders with a secondary market to sell loans post-close, our Prime-Grade Mortgage Program directly addresses the challenge faced by an estimated 50 million consumers currently locked out of appropriate mortgage financing by traditional lending standards," said Mary Lee Widener, president of NHSA.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
March 28 -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28