RoundPoint Mortgage Servicing Corp. is now subservicing mortgages originated by Neighborhood Lending Services, a Chicago-based nonprofit that provides fixed-rate loans for home purchases, refinancings and renovations.
"We are delighted to have been selected as NLS' subservicing partner and look forward to providing a world-class customer experience to its borrowers," said RoundPoint's CEO Kevin Brungardt in a press release. "At RoundPoint, we are committed to partnering with organizations, such as NLS, that are in the pursuit of expanding homeownership and strengthening communities."
NLS is an affiliate of Neighborhood Housing Services of Chicago Inc., a nonprofit neighborhood revitalization organization. NHS has served more than 228,000 clients since its inception. Besides the loan program, NHS provides home-buyer education classes.
"NLS provides much needed capital for its low-to-moderate income customers and with RoundPoint's subservicing expertise, we are well positioned to support them in their efforts to improve their customer service and grow," said Allen Price, RoundPoint's senior vice president of business development.
RoundPoint is already servicing loans for NLS. "The transfer of our initial loans could not have gone smoother," said Robin Coffey, chief credit officer at NHS.
The NLS portfolio consists of over $200 million in unpaid principal balance of nonconforming/nonagency mortgages. Other nonprofits use RoundPoint as a subservicer.
NLS originates loans in Chicago, northeast Kane County and south suburban Cook County.
RoundPoint currently services over $75 billion of mortgages on a contract basis as well as on its own behalf. This past November, the Charlotte, N.C.-based company launched a retail mortgage lending division.
The NLS lending program allows borrowers to put as little as 3% down with no private mortgage insurance required. Qualification is not based solely on credit score. The nonprofit had a $34.5 million loan pool in 2014 with 20 bank lending partners, according to its website.
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Corrected March 23, 2018 at 2:37PM: This story has been corrected to reflect that other nonprofit agencies use RoundPoint as a subservicer for their mortgage portfolios.