September 6, 2023
Bucking the current market trends of receding guidelines, staffing layoffs and lower production, LoanStream continues to surprise with its consistent approach of providing all methods of financing to a shrinking mortgage market.
IRVINE, CA / ACCESSWIRE / September 6, 2023 / It’s no surprise that the mortgage market is contracting significantly, thanks to the Federal Reserve’s approach to battle inflation with higher interest rates. LoanStream continues to provide innovative options while ensuring each consumer’s ability to repay. In the world of affordability, the Federal Reserve leaves us with much to be desired and interpreted. “Our mission is to ensure a suite of loan program options to navigate any market, even this one,” said Rabi Aziz, LoanStream’s Chairman and CEO.
In its first September debut, LoanStream will now offer a proprietary Closed-End 2nd TD program on all income doc types, including DSCR loans. Borrowers with mortgage rates established in 2020-2021, with rates in the 2-4% range are unlikely to refinance those low-rate loans. Giving them the option of a 2nd TD will offer a much lower blended interest rate scenario than refinancing the 1st TD into today’s high interest rates. Borrowers can also choose a piggy-back 1st and 2nd on new loan purchases, should the blended rate make more sense than just a new 1st TD. In the first 2nd TD program of its kind, ITIN borrowers are also included in this offering.
In its second September debut, LoanStream will now offer proprietary 1:0 (rate reduced 1% below the note rate for year 1) and 2:1 (rate reduced 2% below the note rate for year 1 and 1% below for year 2) temporary buy-down programs, similar to those allowed by agency and government loan programs. With temporary buy-down loans, sellers may use allowed concessions to fund the temporary buy-down escrow accounts that subsidize the payments for either one or two years. Better yet, there is no LLPA (loan-level price adjustment) charged to the consumer. Borrowers are still qualified on the fully indexed/amortized rate to ensure ability to repay and ATR requirements. ITIN borrowers are also included in this offering.
Being one of the first companies to re-enter the non-agency space in 2014, LoanStream Mortgage operates as a private prime and government mortgage company, with a strong secondary appetite for non-qualified mortgage products (NonQM). While the company will continue its grassroots in prime and government lending, Serene Vernon, the company’s President, said, “While many of the prime eligible borrowers were purchasing and refinancing during 2020-2021, those self-employed, real estate investor and jumbo loan size consumers, were largely locked out of the market. Now is the time to turn our attention to these borrowers and offer them the financing they need.”
The company operates Wholesale under LoanStream Mortgage, Forward Lending and Lending Pro’s, providing brokers many ways to access financing for these and many other great loan programs.
Bankers can access delegated, non-delegated, bulk, flow, mandatory and best-effort lock options through Loan Stream’s Correspondent channel.