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7 March 2025 M T E C H March 2025 » CLICK N' CLOSE LAUNCHES NEW DOWN PAYMENT AS- SISTANCE OPTIONS T he multi-state mortgage lender Click n' Close has revealed two improvements to its Shared Appreciation Mortgage (SAM) program, designed to help make homeownership more affordable and accessible for a wider spectrum of customers. Through its Wholesale and Corre- spondent businesses, Click n' Close now provides down payment assistance (DPA) options of 3.5% and 5% for its Shared Ap- preciation Mortgage (SAM) program in an effort to help purchasers overcome ad- ditional financial obstacles. These choices give purchasers more freedom and enable them to purchase a home with low initial expenses while taking advantage of a gradual increase in the property's value. "Even with the rate cut announced at the Federal Reserve Board's September 2024 meeting, higher-than-average mort- gage interest rates and limited housing supply have made today's market finan- cially tough for many aspiring home- owners," said Jeff Bode, Owner and CEO of Click n' Close. "Our expanded DPA offerings not only make homeownership more affordable but also allow buyers to participate in the long-term economic benefits of home appreciation." Click n' Close has developed a special calculator for program partici- pants to help them inform prospective borrowers about the financial advantag- es of using the SAM program to buy a home as opposed to renting, in addition to these improved down payment choices. Loan officers may illustrate the possible financial benefits of home- ownership with this interactive tool, enabling purchasers to make well-in- formed choices. Click n' Close's SAM program, which was introduced in April 2024, provides a repayable DPA second lien and a below-market interest rate for first-lien FHA and USDA loans in exchange for up to 40% of the home's appreciation over the first five years. The shared appreciation value is added to the second lien and amortized over the remaining term following the five- year accumulation period. RISKSPAN INTRO- DUCES ENHANCED NON-QM OPTIONS T he most recent Non-QM Prepayment Model from RiskSpan has been announced. It incorporates loan-level non-QM per- formance data from CoreLogic. Using a strong, segmented modeling technique, this update greatly improves the accura- cy of prepayment forecasts for non-QM loans and mortgage-backed securities. The two-component framework presented by RiskSpan's new non-QM prepayment model increases the accu- racy of prepayment forecasts: • The first component is a Unified Turnover Model, designed to cap- ture base prepayment trends. • The second component, a Refinance Model Categorized by Documenta- tion Type, is capable of distinguish- ing among and modeling behavioral characteristics specific to bank statement, debt service coverage ratio/investor, full documentation, and other documentation types. The model takes into account long-term prepayment behavior with conventional loans, even though there isn't a lot of non-QM data history. It's based on loan performance data from October 2019 to March 2024. Important improvements consist of: • Sensitivity to SATO (Spread at Origination) and Burnout Effects, refining prepayment behavior projections. • DSCR-Specific Adjustments, incor- porating prepayment penalty terms and amounts to refine refinance calculations. This release improves market par- ticipants' capacity to precisely evaluate non-QM prepayment risk, optimize portfolio strategies, and enhance sec- ondary market pricing by using detailed loan-level analytics from CoreLogic. "Our latest model delivers a more precise view of non-QM borrower be- havior, equipping market participants with the insights needed to manage risk effectively," said Divas Sanwal, Senior Managing Director and RiskSpan's Head of Modeling. "By leveraging CoreLogic's expansive dataset and an expansive GSE dataset, we're enabling investors to better anticipate prepay- ment trends and make more informed decisions." The new model is now available for integration into RiskSpan's Platform. "Even with the rate cut announced at the Federal Reserve Board's September 2024 meeting, higher-than-average mortgage interest rates and limited housing supply have made today's market financially tough for many aspiring homeowners." —Jeff Bode, Owner and CEO, Click n' Close