Wholesale Programs for Every Score

But first, in wholesale technology, Scotsman Guide recently announced it launched an online service that allows brokers to post loan scenarios and receive replies, rate quotes and specific comments directly from wholesale residential and commercial lenders.

The Residential Loan Post allows originators to search free for prime, Alt-A, nonprime, hard money, construction and other niche residential loan scenarios for vacation, investor or any residential one- to four-family unit properties. Commercial loan scenarios that can be searched include those for multifamily, hard money, and construction for income-producing and residential properties with at least five units, according to Scotsman’s Web site.

In the commercial mortgage lending sector, World Capital Bancorp launched a new program offering no prepayment penalties on a 10-year fixed mortgage that is also available with a 30-year amortization, according to a press release. The full income documentation loan product is good for up to $3 million and up to 80 percent loan-to-value.

Due to their cost of loan production, this program is not being offered by traditional banks, which only finance 10-year fixed commercial mortgage product with a 10-year prepayment penalty, World said.

“The multifamily market is just now recovering from a five-year decline due to the low cost of residential mortgage money available to first-time homebuyers and the decrease in rental prospects,” said Dylan Jones, World chief underwriter, in the written statement. “This renewed market interest is in need of some flexibility as inventory for the larger real estate brokerage houses increases.”

In the Alt-A arena, brokers now have a new wholesale choice as First Franklin Financial Corp. started taking applications for such loans on June 11, spokeswoman Catherine Manning told MortgageDaily.com. Stepping up from its previously subprime-only menu, First Franklin is offering Alt-A programs on a full-doc basis with credit scores of at least 620, and on stated-income and no-ratio terms for scores of at least 660 on single liens with interest-only payments and combos with lower blended rates but at least 680 on certain other programs, according to its Web site.

The Merrill Lynch & Co. subsidiary’s Alt-A menu consists of finance amounts of up to $2 million for monthly option adjustable-rate mortgages of up to 80 percent LTV and for hybrid option ARMs and fixed-rate payment option loans of 90 percent or greater LTV. Also on the menu are single liens with interest-only payments and combos with lower blended rates for loan amounts of up to $ 3 million on up to 95% LTV for first liens, First Franklin’s site states.

On the subprime side, American Guardian introduced Comanche Nonprime Expanded 2/28 ARM with interest-only options of five or 10 years and available on a full-doc and stated basis on minimum score of 580, according to the wholesaler’s product sheet. All first mortgages are interest-only for the first 5 or 10 years and amortize completely over the remaining 25 or 20 years, respectively. IO terms are available with the 30-yr fixed product and 2 or 3-year fixed/ARM products. A maximum 90 percent LTV is allowed but full doc/BBS with credit score below 660 is limited to 85% LTV and combined LTV and all others with less than a 660 are limited to 80 percent LTV and CLTV.

The world of hard money had Charter Bank’s specialty lending group offering a fully-amortizing 2/28 ARM available with an interest-only option on either a full-doc or stated-income and stated-asset basis. There is no credit score requirement, except on full doc loans of up to 70 percent LTV and non-owner occupied loans of up to 65 percent LTV, and the program has a rate of 11.5 percent with escrow or 11.75 percent without escrow, an assistant to the group’s vice president told MortgageDaily.com.

Full-doc loans for a maximum 70 percent LTV are allowed on single-family residences and owner-occupied homes, according to an e-mail from the Charter group. For stated-loans, up to 65 percent LTV is allowed for owner and non-owner occupied and second homes, or up to 60 percent LTV for two to four-unit properties. CLTV up to 100% is allowed with the use of any third-party subordinated debt combination. The program is available in Arizona, California, Colorado, Florida, Idaho, Nevada, Oregon, Texas, Utah and Washington.