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28 THE AMERICAN DREAM–OWNING YOUR HOME–HAS BECOME A NIGHTMARE FOR SOME. Although many of the new rules and regulations for origination and servicing are welcome changes to help consumers navigate a previously-unregulated industry, the new restrictions imposed by the Consumer Financial Protection Bureau (CFPB) on mortgage lenders and servicers, and the corresponding increase in liability and cost to lenders, has resulted in the restriction of necessary qualifications for borrowers seeking financing, leaving many otherwise hard-working and reliable prospective homeowners to settle for renting with no prospect of being able to qualify to purchase. Several private research firms have estimated that anywhere from 10 to 50 percent of homebuyers who qualified for mortgages under the former, less regulated and restrictive, standards have been shut out of the housing market, according to Wealth Daily. Since 2008, housing market casualties have included prospective, first-time home buyers, prospective buyers with imperfect credit profiles, as well as those who have previously lost jobs, and/or their former homes. e Wealth Daily article asserts that small- business owners and independent contractors are typically disregarded for qualification of a conventional mortgage loan, since their income cannot be verified by recurring payroll receipts, history of employment and is subject to fluctuation year-over-year. In addition, those with less-than-stellar credit are finding it difficult to get a conventional mortgage, regardless of loan-to-value ratios. For those caught in this dilemma, there are other financing vehicles for homeownership– one option being owner-financed contracts. ere are several advantages to using owner- financed contracts for both property owners and buyers. Typically, under the terms of an owner- financed contract (at least, with the contracts we employ at National Asset Mortgage), a buyer can purchase an equity interest in a property, usually with a nominal up-front cost and a reasonable monthly payment, and quickly increase both the property's value and his/ her equity interest, either by making physical improvements or simply benefitting from appreciation. e benefits afforded property owners, via the use of owner-financed land contracts, include a speedier eviction procedure in most states. Our companies, National Asset Advisors, LLC and National Asset Mortgage, LLC, have recently rolled out another option for property owners, one that combines an absolute lease/purchase option agreement with an ultimate goal of conversion to an owner- ADVERTORIAL financed contract. e structure has numerous advantages for both prospective buyers and property owners. With a low initial down payment and similar credit requirements to a typical land contract, a prospective buyer can qualify for a homeowner program by establishing good payment history and, concurrently, lock-in a purchase price and owner-financing at the time the option is exercised, over a two- to five-year option period, with greater ease and quicker turn-around times. e property owner maintains the control of the deed, has less stringent regulatory requirements, as well as an almost immediate cash flow. After the initial 12-month term, an optionee with perfect lease payment history, and an equal, or better, credit position than that at the time of lease/option commencement, can convert the transaction into homeownership. NAA has developed a three-prong strategy for success for absolute lease/purchase properties. First, the property is identified as one that would be suited for a lease/purchase option transaction. e company inspects the property and performs preservation to ensure code compliance and occupancy restrictions, then performs a rental and sales pricing analysis, places "for lease" signage on the property and markets it through various local and internet outlets. e company processes applications, credit checks and other prequalification actions to ensure that the lease/ purchase tenant/buyer is creditworthy. e second component involves assisting in converting the lease/purchase option to sale and mortgage and servicing within regulatory compliance through National Asset Mortgage. (NAM) Our licensed loan originators negotiate the lending rate and terms, prequalify the buyer and process the application, perform a comprehensive review of the buyer's credit, and work with the buyer to convert the lease/purchase to either an owner-financed contract or mortgage. Upon conversion, NAM provides licensed loan servicing for the owner-financer. is federal- and state-compliant process ensures the smooth transition from the lease/purchase to owner- financed or mortgage package. e third strategy involves Specialty Lease Servicing Division, which serves to educate the tenant/buyer about living in and caring for a home, provides compliant consumer monthly account statements and maintains constant communication as to payment options and expectations regarding the maintenance of the property. On the property owners' side, NAA's Specialty Lease Servicing Division collects payments and delivers cash flow directly into owner bank accounts, as well as monthly reporting to owners. Owners have online access to all account activity 24 hours a day, 7 days a week.