Wholesalers bring out new nonconforming offerings

As the potential mortgage origination market shrinks because of rising interest rates, some wholesale lenders are coming out with products to serve borrowers outside of the conforming footprint.

United Wholesale Mortgage is offering a bank statement loan for self-employed borrowers only. Loan limits are up to $3 million, and borrowers can have a 90% loan-to-value ratio with no mortgage insurance required. It is a non-qualified mortgage product.

It is the first bank statement loan that UWM has offered to its mortgage broker customers. And this is the only specific product for self-employed borrowers, a company spokesperson explained.

“This will give independent mortgage brokers another competitive edge when it comes to working with non-W2 borrowers,” a UWM press release said.

Back in January, UWM expanded its nonconforming menu with Jumbo Prime Max.

UWM also announced it is extending its no-cost appraisal for primary home purchase mortgages through the end of April.

Separately, Plaza Home Mortgage’s wholesale division came out with DSCR Investor Solutions for investment property loans.

This product offers loan terms of 30-year fixed fully amortized and 40-year fixed interest only, with debt service coverage ratios as low as 0.75%.

Loan amounts can range from $100,000 to $3.5 million with LTVs to 80% and credit scores as low as 620. Property types Plaza is willing to lend on include one-unit single-family rental or planned unit development, two-to-four units and condos. In addition, the product is available with and without prepayment penalties.

“Our new DSCR offering further expands our non-QM suite and gives our brokers yet another reason to do business with us,” said Jeff Leinan, president of Plaza’s wholesale division in a press release.

The loans will be underwritten by the non-qualified mortgage team. “So, clients will be dealing with experienced underwriters who know how to originate cash-flow loans,” he continued.

Meanwhile, mortgage fintech Wemlo, a Remax subsidiary that is a sister company to mortgage brokerage franchisor Motto Mortgage, has added processing technology for non-QM loans to its services. This includes both DSCR and bank statement products, along with specialized borrower assistance loans for low credit score and down payment assistance; and manufactured home and construction loans. Capabilities were also added for the Veterans Affairs Interest Rate Reduction Refinance Loan and Federal Housing Administration Streamline loan products.