The mortgage market is shrinking due to the Federal Reserve’s efforts to combat inflation through higher interest rates. LoanStream remains committed to offering innovative options while prioritizing borrowers’ ability to repay. The Federal Reserve’s approach to affordability raises questions, but LoanStream aims to provide diverse loan programs to navigate any market challenges, as stated by Rabi Aziz, LoanStream’s Chairman and CEO.
In its inaugural September launch, LoanStream will introduce an exclusive Closed-End 2nd TD program, available for all income documentation types, including DSCR loans. Borrowers who secured mortgage rates between 2020-2021 in the 2-4% range are unlikely to refinance due to current high rates. Providing them with a 2nd TD option results in a significantly lower blended interest rate compared to refinancing the 1st TD. Additionally, borrowers can opt for a piggy-back 1st and 2nd TD on new loan acquisitions if the blended rate proves more advantageous than a standalone 1st TD. Notably, this program extends to ITIN borrowers, marking a pioneering inclusion in its category.
In its second September launch, LoanStream introduces unique temporary buy-down programs, including 1:0 (1% rate reduction for year 1) and 2:1 (2% rate reduction for year 1, 1% for year 2), akin to government programs. Sellers can fund these via concessions, reducing payments for 1-2 years. No LLPA (loan-level price adjustment) is imposed on borrowers. Qualification relies on the fully indexed/amortized rate to ensure ability-to-repay and ATR compliance, including ITIN borrowers.
As one of the pioneers re-entering the non-agency market in 2014, LoanStream Mortgage functions as a private prime and government mortgage firm, with a strong interest in non-qualified mortgage products (NonQM). While the company maintains its foundation in prime and government lending, Serene Vernon, the President, emphasized the need to focus on self-employed, real estate investors, and jumbo loan borrowers who were largely excluded from the market during 2020-2021. It’s now an opportune moment to provide them with the financing they require.
The company functions in the wholesale sector through LoanStream Mortgage, Forward Lending, and Lending Pro’s, offering brokers multiple avenues to access financing for various loan programs. For bankers, LoanStream’s Correspondent channel provides access to delegated, non-delegated, bulk, flow, mandatory, and best-effort lock options.
