PROGRESS in Lending Association has learned that Carrington Mortgage Services has announced the national availability of The Carrington Loan, which offers borrowers a more transparent, simplified home loan process with no closing costs or upfront financing fees. Developed in support of Carrington’s commitment to serve the “underserved” market and first time homebuyers, The Carrington Loan can facilitate home purchases for borrowers in the sub-640 FICO score range. Here’s why this matters:
“Many underserved borrowers, including first time homebuyers, still view the path to a mortgage loan as unattainable, complex and often cumbersome. The Carrington Loan simplifies the process and improves the experience to help remove the anxiety, particularly for those who do not have sufficient cash on hand to pay closing costs,” said Carrington Mortgage Services Mortgage Lending Division Executive Vice President Ray Brousseau. “With The Carrington Loan, there is no need to modify the rate after it is presented to the borrower to offset loan costs and loan closing fees, and unexpected increases to estimated closing costs are not an issue. Removing these barriers greatly alleviates the stress on borrowers who desire to fulfill their dream of homeownership.”
The Carrington Loan is unique in that:
>> There are no closing costs, appraisal fees, or lender financing fees.
>> Carrington pays all eligible loan costs as lender credits.
>> If any unanticipated lender costs arise, Carrington will issue a credit to cover them. This may include additional title or escrow service charges from the title or settlement company.
According to industry experts, one in three consumers has a FICO credit score below 650. For these consumers, and the brokers and agents working with them, obtaining access to appropriate financing options can be a challenge. Earlier this year, Carrington lowered its minimum credit requirement to a FICO score of 550, and expanded its guidelines on a number of FHA, VA and USDA loan programs, extending eligibility to more property types and reducing overlays. As advocates of borrower education and in support of the company’s commitment to meeting the needs of the underserved market, Carrington developed patent-pending MyLoanDetail, a proprietary online loan review resource designed to improve the financial literacy of its customers by walking every customer through the details of their loan. This education initiative will help to ensure borrower understanding of loan terms and responsibilities. Carrington will require all of its customers to complete the MyLoanDetail online education prior to funding.
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.