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Optimal Blue Launches Support For Non-QM Loans

The latest release from Optimal Blue augments and expands their support for Non-QM and Expanded Guidelines products. Earlier this year, the company decided to make a substantial investment to further enhance support for these unique mortgage loan products after observing significant growth in this area. Currently, Optimal Blue’s Expanded Guidelines monthly lock volume exceeds $1 billion, a threshold 2.5 times the volume experienced just 18 months earlier.


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Significantly benefiting investor and lender clients alike, these powerful and innovative capabilities allow investor clients to further expand their suite of product offerings, improve accuracy, and gain new clients. Additionally, lenders can streamline inefficient workflows, enhance their competitive reach with new borrowers, and easily access the Non-QM and Expanded Guidelines product offerings for more than 60 leading investors. 


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“Sprout Mortgage congratulates Optimal Blue on the release of its new Non-QM product selection capabilities and thanks them for creating this industry leading technology,” said Mike Strauss, President of Sprout Mortgage. “While only requiring minimal user inputs and established data feeds from leading loan origination systems to automatically pre-populate additional values, Sprout has found Optimal Blue’s Non-QM filters to fully support its product line with complete accuracy.”


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Users of the Optimal Blue platform can quickly and easily identify the most accurate, “best fit” financing alternative for each and every consumer they serve. Immediately available to clients at no additional cost, a brand-new Expanded Guidelines section will be added to all applicable search, profile, and lock forms within the platform in order to fully support the unique specifications of Expanded Guidelines products. Close to 20 granular filters will be embedded into those forms for income verification, payment history, debt consolidation, bankruptcy, and more. In addition, Optimal Blue now evaluates specific housing events, financial outcomes, and other user-defined selections to further refine pricing precision and overall product searchability. 


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 “This is a tremendous step forward for the Non-QM marketplace and takes the uncertainty out of choosing the Non-QM loan that best fits borrowers’ needs,” Strauss continued. “As a result of the new Non-QM filters, loan officers can put away their makeshift scratch pad notes and instead, leverage the power of Optimal Blue’s engine to discover those eligible Non-QM products that provide borrowers with their lowest cost financing choices.”

“We are proud to offer enhanced Expanded Guidelines support to our clients,” explained Tiffany McGarry, Director of Client Services at Optimal Blue. “These market-leading capabilities further exemplify our continued focus on delivering unique secondary marketing solutions that help our clients differentiate and grow.”

Top Non-QM Securitizer Pushes Volume To Approximately $4 Billion

Verus Mortgage Capital (VMC), a full-service correspondent investor offering residential non-QM, investor rental and fix and flip loan programs, has finalized its 11th rated RMBS (residential mortgage-backed securities) transaction for $609.2 million.


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The transaction was comprised of 1,204 loans with an average LTV of 70% and 710 credit score.


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To date, Verus is the top non-QM securitizer and for 2019, it has been the largest non-QM issuer with $1.6 billion of collateral across three transactions. This transaction was the investor’s second largest in its history, and raises the company’s overall securitization volume to approximately $4 billion.


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“We are excited with the level of activity we’re seeing this year, and we expect strong interest in and demand for non-QM activity to continue throughout the remainder of the year,” said Dane Smith, President of VMC. “We remain dedicated to assisting correspondent originators with growing their businesses with responsible non-QM solutions and are committed to efficiently purchasing quality loans,” Smith added.


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Founded in 2015, Verus Mortgage Capital (VMC) is a non-QM correspondent investor backed by Invictus Capital Partners, a leading investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. It offers correspondent lenders a wide range of home financing products for credit worthy borrowers.

Verus Mortgage Capital Completes $372M Investor Loan RMBS

Verus Mortgage Capital, a full-service correspondent investor offering residential non-QM, investor rental and fix and flip loan programs, has finalized its 10th rated RMBS (residential mortgage-backed securities) transaction for $372 million. Verus 2019-INV1 was VMC’s largest investor loan transaction to date and the third transaction issued by Verus that was backed by non-owner occupied rental loans. 


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The transaction was comprised of 976 loans with an average balance of $380,000, LTV of 63% and 727 credit score.


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“Demand for investor loans continues to grow,” said Dane Smith, President of VMC. “Verus is focused on building an active investor lending and non-QM market with expansive program offerings, establishing strong partnerships with correspondent originators and answering the needs of underserved, creditworthy borrowers.”


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Founded in 2015, Verus Mortgage Capital (VMC) is a non-QM correspondent investor backed by Invictus Capital Partners, a leading investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. It offers correspondent lenders a wide range of home financing products for credit worthy borrowers.


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The Washington, D.C.-based company, with operations located in Minneapolis, has purchased in excess of $5 billion in expanded, non-agency loans since its inception. In addition, through its affiliates, VMC has completed 10 rated securitizations. 

Verus Mortgage Capital Completes $664.1 Million Loan MBS Transaction

Verus Mortgage Capital (VMC), a full-service correspondent investor offering residential non-QM, investor lending solutions and fix and flip loan programs, has finalized its ninth rated RMBS (residential mortgage-backed securities) transaction for $664.1 million. Verus Securitization Trust 2019-1 was VMC’s largest transaction to date and the second largest in the non-QM space. 


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The transaction was comprised of 1,270 loans. The securitization was rated by S&P Global Ratings and Morningstar.


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“We are off to a great start in 2019 and seeing increased interest in non-QM lending,” said Dane Smith, President of VMC. “At Verus, we’re committed to creating a market for innovative loan products and building partnerships with correspondent originators. We’re determined to help originators meet the needs of underserved borrowers who fall outside traditional credit guidelines.”


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Founded in 2015, Verus Mortgage Capital (VMC) is a non-QM correspondent investor backed by Invictus Capital Partners, a leading investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. It offers correspondent lenders a wide range of home financing products for credit worthy borrowers.


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The Washington, D.C.-based company, with operations located in Minneapolis, has purchased in excess of $5 billion in expanded, non-agency loans since its inception. In addition, through its affiliates, VMC has completed nine rated securitizations.

Verus Mortgage Capital Finalizes $442 Million Non-QM MBS

Verus Mortgage Capital (VMC), a full-service correspondent investor offering residential non-QM and investor lending solutions, has completed its seventh rated RMBS (residential mortgage-backed securities) transaction for $442 million. The transaction is the second largest in VMC history, and its fourth securitization this year.


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Rated by S&P Global Ratings and Morningstar, the transaction included 809 loans from 61 lenders. The transaction included owner occupied non-QM loans as well as non-owner occupied loans.


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“We continue to see great demand for non-QM and investor loans and expect that to continue in 2019,” said Dane Smith, President of VMC.


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“We remain focused on the dynamic secondary market where we are engaged with quality partners,” Smith added. “Purchasing responsible non-QM and investor loans consistently and efficiently illustrates our commitment to this sector.”

Founded in 2015, Verus Mortgage Capital (VMC) is a non-QM correspondent investor backed by Invictus Capital Partners, a leading investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. It offers correspondent lenders a wide range of home financing products for credit worthy borrowers.

The Washington, D.C.-based company, with operations located in Minneapolis, has purchased in excess of $3 billion in expanded, non-agency loans since its inception. In addition, through its affiliates, VMC has completed seven rated securitizations. 

Investor Increases Loan Amounts To $5 Million For Multiple Non-QM Programs

Verus Mortgage Capital (VMC), a full-service correspondent investor offering residential non-prime lending solutions, has increased loan amounts to $5 million for several of its non-QM programs, and higher LTVs for interest-only loans. VMC has increased loan amounts for:

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>>Investor Solution Full Documentation, Self Employed and Foreign National programs, from $2 million to $5 million, starting at $75,000.

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>>Credit-impaired borrower loans from $2 million to $5 million, starting at $100,000, through the Credit Ascent program.

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>>Higher-balance loans offered with alternative documentation for self-employed individuals from $3 million to $5 million, starting at $150,000 through the Prime Ascent program. Prime Ascent interest-only loan LTVs increased from 80% to 85%.

“At Verus Mortgage Capital, we’re dedicated to building the non-QM market. We are committed to offering lenders flexible funding options for underserved borrowers who don’t fit into the conventional profiles,” said Dane Smith, President of VMC. “Right now, non-QM lending is a huge opportunity for lenders to grow their businesses and provide solutions to fill a very real void in our industry.”

Founded in 2015, VMC is a non-QM correspondent investor backed by Invictus Capital Partners, an investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-QM market. It offers correspondent lenders a wide range of home financing products for credit worthy borrowers.

The Washington, D.C.-based company, with operations located in Minneapolis, has purchased just under $2.4 billion in expanded, non-QM loans since its inception. In addition, through its affiliates, VMC has completed five rated securitizations.

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Lender Launches Non-QM Product

Parkside Lending, a national wholesale and correspondent lender, is reintroducing Parkside Collateral, a non-QM loan product created to provide affordable financing exclusively for investment properties. It is available through Parkside Lending, LLC’s Wholesale Channel beginning June 1, 2015.

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By design, the Parkside Collateral loan focuses on positive cash flows and underwriting requirements that are both sensible and responsible. Some of the features of this 30-year fixed term product include:

  • Unlimited Financed Properties (max 4 or $2MM with Parkside)
  • Loan-To-Values up to 70%
  • Minimum credit score of 700
  • Loan amounts starting  from $75,000 and up to as much as  $1,000,000 for 4-unit properties
  • There is no borrower Debt-To-Income (DTI) calculation; qualification is based on the property DTI with a maximum of 90%
  • Eligible properties include single family residences, Planned Unit Developments (PUD), condominiums, and 2-4 unit multi-family dwellings

“This non-QM product addresses the current lack of liquidity for loans that do not fit the conventional mortgage space and answers a real need among creditworthy borrowers who wish to purchase or refinance investment properties,” said Clint Rosenthal, Executive Vice President of Sales, Parkside Lending. “We believe the most impactful thing a lender can do for qualified borrowers today is to support them by creating viable non-QM solutions.”

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Parkside Lending is a national wholesale and correspondent lender that cares. It is committed to making a positive difference for clients and their customers. Parkside Lending’s sensible approach to underwriting, innovative suite of mortgage products and proprietary technology help loan officers and lenders close more loans. It employs seasoned professionals who bring respect, integrity and commonsense underwriting to every transaction. Furthermore, because it doesn’t serve the retail channel, Parkside Lending’s clients can be confident that it will never compete for their customers.

Bringing Back Non-QM

Litigation Guard, LLC and Bankers Insurance Service (BIS) have launched an online product for lenders that seeks to revitalize lending in the non-QM market. Litigation Guard and BIS are providing a technology and insurance solution that is aimed at reducing lender risk by providing a valuable defense against “Ability-To-Repay” claims, while also educating borrowers on the mortgage process and terms of their loans.

Litigation Guard provides third-party verification that borrowers have the ability to repay their loans. Litigation Guard uses a proprietary algorithm, along with online assessments, educational videos and other web-based tools that mortgage originators use during the underwriting approval process. This verification system, which takes only minutes for the borrower to complete, gives the mortgage originator confidence that the borrower has the ability to repay the loan and is educated on the mortgage lending process. Importantly, once the loan receives an approval from Litigation Guard and the loan closes, unique E&O insurance applies.

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The insurance program will be administered by BIS, coverholder at Lloyd’s, and underwritten by certain underwriters at Lloyd’s.

Christopher Tiso, Litigation Guard’s CEO, stated, “Our company pioneered technology that reduces the biggest legal risk in non-QM lending. Backing our product with innovative E&O insurance that is underwritten and placed by two pillars in the industry who have been insuring the mortgage lending industry for sixty-plus years is the perfect complement to our product offering.”

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“We are thrilled to be able to place innovative E&O insurance behind Litigation Guard’s cutting edge and robust online risk management tool,” said Tom Delaney, BIS’ Managing Director.

The firms will work together over the coming months to provide clients with tools that will protect both loan originators and investors in the non-QM lending space.

By bringing together these respected firms and approaching risk management challenges from an educational and technology-minded vantage point, mortgage lenders will be able to enter the non-QM lending space equipped with a new tool that will help them manage their exposure to third party liability.

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A New Mortgage Tech Startup

Privlo, a non-QM mortgage startup backed by Spark Capital and QED Investors, just launched in its home state of California where a growing self-employed workforce is increasingly locked out of homeownership by traditional banks. Privlo’s mortgage platform takes in a far wider range of credit criteria and unique documentation than traditional lenders to assess high quality borrowers with complicated incomes or financial histories. These segments include small business owners, entrepreneurs, self-employed individuals and seasonal or commissioned workers with spiky incomes. Where banks may shy away from strong applicants who can’t prove financial ability with simple tax returns or W2s, Privlo works with them to sort through the complexity and find a truer measure of their creditworthiness.

In a state where 1 in 6 people in the workforce are either self-employed or small business owners, traditional lending standards are creating an imbalance. “More than 90% of California’s small businesses are sole proprietorships, and it’s no secret that many in this group are totally capable of taking on a mortgage but simply can’t get approved. There’s pent up demand in every state we’ve launched, but we expect California to exceed anything we’ve seen so far,” says Privlo’s Chief Credit & Product Officer Saro Vasudevan. California cities like Berkeley and Santa Monica lead the nation, hovering around 22% self-employment and reflecting the state’s entrepreneurial and contract-based industries like entertainment and technology.

The company, which also specializes in people who have had a single negative credit event, provides mortgages to highly qualified applicants who may have a bankruptcy or foreclosure as recent as a year old, and a short sale 6 months or older. This is compared to the general standard of two years or more among traditional lenders.

“We retain lifetime interest in every loan we make so we’re still quite selective. When we look past things like uneven income, we’re finding really qualified people, some even with credit scores in the high 700s with great financial capability,” says Privlo Founder and CEO Michael Slavin. “What we’re doing is more of a mind shift if you think about it. If you live here in California, you’re probably blazing your own path in one way or another. Traditional careers are becoming a thing of the past and we believe in embracing people and their entire financial picture, however complex it is, rather than devaluing their true financial ability.”

The company expects most self-employed Californians who will qualify for home loans, or “Privloans” as they are called, to come from consumer-facing industries such as entertainment, tech, food and beverage, hospitality, and health care services – sectors with variable income that make them unattractive to traditional mortgage lenders, but an ideal fit for Privlo.

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