mortgage lender

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Flagstar Bank, a top-25 U.S. mortgage lender, recently participated in two M&A deals. 

In December 2022, the bank concluded the merger with New York Community Bancorp after waiting for regulatory approvals for over a year. In March 2023, Flagstar surprised the market amid the banking crisis by acquiring some assets, liabilities and deposits of Signature Bank from the Federal Deposit Insurance Corporation (FDIC). 

So what do these transactions add to Flagstar? 

Lee Smith, senior executive vice president and president of mortgage, said the Flagstar-NYCB transaction created a “bigger bank with scale, very little business overlap, and a more diversified business model.” 

Meanwhile, Signature brought in high-net-worth customers and took the loan-to-deposit ratio to less than 90%, strengthening the bank’s balance sheet.  

Smith, who thinks the banking crisis is much calmer now, said Flagstar’s current priority is integrating NYCB and Signature and looking for synergies when bringing systems together, including through real estate consolidation. 

“There’ll be cost synergies, but you wouldn’t just think about them in terms of layoffs,” Smith said. 

Regarding the mortgage business, Smith anticipates that the market will recover in 2023, with rates at the 5% level. But, according to the executive, Flagstar has built a diversified mortgage business to win in the market whether rates increase or decrease. This includes, among other businesses, origination, servicing, subservicing and warehouse lending. 

“We are what we call a one-stop shop mortgage model,” he said. 

In light of the recent M&A deals, Smith spoke to HousingWire from his office in Troy, Michigan, to explain the company’s business model. 

This interview has been condensed and lightly edited for clarity.

Flávia Furlan Nunes: ​​What was the rationale behind the merger with New York Community Bank?

Lee Smith: That is a transaction we announced in April of 2021, and we closed it on December 1, 2022. That’s something that had been in the works for 20. months. If you look at any bank M&A deal, that’s a typical time. 

The beauty of bringing those two organizations together is it created a $90.1 billion bank at the year-end 2022. At Flagstar, we have a heavy mortgage business, a community bank, bank branches, commercial lending, including warehouse lending, and homebuilder finance. 

NYCB was very concentrated in multifamily lending, particularly in the New York area. By bringing those two organizations together, you created a bigger bank with scale, very little business overlap, and you had a more diversified business model. 

Together, NYCB and Flagstar have 435 bank branches. We’ve got a very diversified branch footprint. NYCB and Flagstar have known each other for a long time. It was a natural conversation. It was an opportunity to grow.

Nunes: Why did Flagstar acquire some Signature assets, liabilities and deposits when you were still integrating with NYBC?

Smith: More recently, we saw the banking crisis hit in March. Three banks – and a fourth with First Republic – were affected by that, Silvergate, Silicon Valley Bank, and Signature Bank. We knew Signature Bank well because they’re a New York bank. We are operating in the same market, same customers, sometimes competing against each other as just friendly competitors, sometimes working together.

Unfortunately, they were seized by the FDIC on the Sunday after Silicon Valley. When it seizes a bank, the FDIC runs a process to sell the assets and liabilities as quickly as possible. So, they hired bankers. 

We were able to, given our knowledge of the bank, get involved in the process and submit a bid. We ended up buying $38 billion of assets, which included $25 billion of cash and $13 billion of loans. And we assumed $34 billion of deposits. 

Nunes: What are the economics behind the transaction, considering Signature’s loans and assets acquired by Flagstar?

Smith: The signature business – again – has not much overlap. We didn’t take their multifamily loans because we already have a multifamily business at NYCB. We obviously didn’t take the crypto business loans and we didn’t take the venture loans.

But we took pretty much most of the other businesses. These businesses complement what we have because they’re dealing with high-net-worth customers. There are different industries that they’re focused on. They had a wealth business that we don’t have; they had a broker-dealer. 

The economics are different when it’s a sale out of receivership. Of course, it’s happening quickly versus a normal process, which takes months. And the transaction transformed our funding mix and the liability side of the balance sheet. It took our loan-to-deposit ratio to less than 90%. And we were over 100% prior to the transaction. So, it really transformed our balance sheet. 

Nunes: Why is Flagstar acquiring Signature and not NYCB? 

Smith: It’s all going to be brand Flagstar. NYCB operated under a number of names because they’ve been acquisitive historically. And Tom [Thomas Cangemi, NYCB president and CEO]  realized we’ve got to come together and have one name. Flagstar is already known nationally, just given our mortgage servicing businesses and certain other lending businesses. And it just made sense to make everything Flagstar.

So, we’re now a $124 billion bank. And we’ve got certain businesses that can be successful in a rising rate environment and businesses that will be successful in a declining rate environment. So, we’re balanced. 

Nunes: How has been the integration of all these businesses? Will you have layoffs resulting from these integrations?

Smith: We’re working through that. We’ve talked publicly that the systems integration for Flagstar and NYCB will be completed in Q1 2024. Remember, with Signature, we’ve acquired loans and deposits. It’s a little different than the merger of NYCB because it isn’t like a full integration. It’s more about lifting loans and deposits and putting them into our systems. It’s easier, in theory.

The focus right now is on completing the integration. The cost synergies can come in a number of ways, including real estate consolidation as we bring systems together and move to one system. There’ll be cost synergies, but you wouldn’t just think about them in terms of layoffs. There are lots of ways you can realize cost benefits from bringing organizations together.

Nunes: What do you expect of the banking crisis? Would Flagstar acquire another bank? 

Smith: Things are much calmer. The reason for that – and, again, this is my opinion – is, if you look at the banks that were seized, so Silicon Valley, Signature, and First Republic, it was more idiosyncratic; they had concentrations in certain areas. With the transaction done with First Republic and JPMorgan, I think we should be in much calmer waters now. We certainly want to digest what we’ve got. That’s our immediate goal right now. 

Nunes: How is the landscape for mortgages? What do you expect for 2023 and 2024? 

Smith: If you go back to 2020 and 2021, the mortgage market was in excess of $4 trillion in size. It was $2.4 trillion last year. If you look at the latest forecast – MBA, Fannie Mae and Freddie Mac – it’s on average $1.7 trillion this year. The Fed has raised rates quickly. When the market was $4 trillion, you could get a 30-year mortgage for 3%. Now you’re looking at 6.5%. 

That’s a big change in a short time. It undoubtedly put a lot of pressure on the mortgage market. That’s why you’ve seen this big reduction in the market size. You’ve reported on it, and it’s public, we’ve certainly had headcount reductions. We’ve reduced the size of our mortgage origination business because we’re focused on profitability. We’re not about having a big market share if you’re not profitable.

It might not be the second half of 2023, but I think in 2024, you’re going to start to see rates come down, and you’ll start to see the 30-year fixed rate, instead of being 6.5%, we’re going to see in the 5%, and then that’s going to generate more activity. 

Nunes: How is Flagstar getting ready for when the market turns? 

Smith: From an origination point of view, we’ve diversified. We originate in  six channels. Four are TPO channels—delegated correspondent, non-delegated correspondent, broker and bulk. Two are retail channels—distributed retail and direct to consumer. Because we’re a bank, we have a balance sheet and can issue our own RMBS [residential mortgage-backed securities]. 

As we originate loans, we’re creating mortgage servicing rights, and we like that asset. If you look at our balance sheet at the end of Q1, we have just over a billion dollars of MSRs. The MSR asset is a hedge against the origination business. 

But then, here’s where it gets interesting for us. We’re also a big subservicer, with 1.5 million loans and almost half a trillion dollars of mortgages. That generates income. In a rising rate environment, there are fewer payoffs, so the loan count increases. And the other thing that that business does is creates escrow deposits that fund our balance sheet because we’re a bank.

And then that brings me to the next part of the flywheel: We’re the second largest warehouse lender in the country. And then we pick up as part of the Signature deal this treasury and cash management team that’s very focused on mortgage companies in terms of bringing in deposits and offering treasury and cash management services. 

I tell you all that because, from a mortgage point of view, we’re hedged. We are what we call a one-stop shop mortgage model.

Source: housingwire.com

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Last week we explored the impact defaulting on loans has on your credit reports and credit scores, and how it can leave you on the wrong end of a collection lawsuit. You can read that article here.

Today I’m closing out this 2-part series by exploring the impact of letting your auto loan and your home go into default.

Transportation

Unless you live in a city where rapid transit is a viable transportation option or you can ride your bike to work, you’re probably going to need a car. And no, public transportation isn’t really a realistic alternative in most large and expansive metropolitan areas. You’re going to need your car to get to work, chauffeur the kids, do your shopping, etc.

If you stopped making your car payments today, your car would be gone in 60-90 days. That’s a much faster response from a jilted lender than you would see with any other type of loan. It normally takes 6 months for a credit card issuer to charge off your balance. And, you’ll see below that not paying your mortgage lender doesn’t lead to immediate homelessness.

Bottom Line: In my opinion, defaulting on your auto loan is going to leave you with more problems than any other loan default. You can live without a credit card, but you can’t live without transportation to earn a living and take care of your family.

Housing

I know what some of you are probably asking, “Why wouldn’t you pay your mortgage first? You need a place to live, right?” You are absolutely correct. You do need a place to live. The good news is that even if you stop paying your mortgage today, you’ll have a place to live for probably the next 12-24 months.

It’s taking forever for lenders to begin foreclosure proceedings and even if/when foreclosure proceedings do start, it doesn’t mean you’re getting kicked out of your house. That’s the next step.

I’m sure we’ve all heard the stories of homeowners refusing to pay their mortgages and living rent-free for years before the lender has them evicted. In fact, there are even examples where the mortgage lender or the investor who has purchased the home out of default actually pays the former owner to leave.

I’m not suggesting this is the right thing to do; I’m just pointing out the realities in the mortgage default world right now.

Bottom Line: Defaulting on your mortgage is going to eventually cost you your home. But, that’s going to take some time and you may be able to use the extra money from the mortgage payment you’re not making to pay down/off other more expensive credit card debt.

Financial Burden

Financially, any default is going to sting, but the pain is variable across loan types.

For example, if you default on a car loan, the lender is going to pay to repossess the car and then probably liquidate it at auction. You’ll be held liable for any deficiency that remains after the car is sold. That could be as little as a few thousand dollars, unless you borrowed a ton of money to buy a quickly depreciating model.

Defaulting on a mortgage loan is going to lead to the same type of financial burden, just a much larger dollar amount. Once the house has been liquidated, likely for much less than you owe on the loan, you may or may not be liable for the deficiency balance. It’s not that cut and dry though, and you’ll want to speak with a lawyer and even a tax advisor about it.

Defaulting on a credit card is a different animal. There is nothing to repossess, which means there’s nothing to liquidate and apply toward your balance. You owe it all, plus interest.

Even when you default, the credit card issuer can still charge you interest and apply late fees. When they finally sell the debt to a collection agency, they can also charge interest. And, if they are successful getting a judgment against you, then yes, more interest can accrue, too. Use Mint’s loan calculator to see how long it will take to pay down each liability.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.

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Today we’ll take a look at “eClick Lending,” which is the online mortgage division of parent company Celebrity Home Loans, LLC.

Their motto is to point, click, and save, a reference to their simplified digital loan process and what they refer to as “incredibly low rates.”

The company seems to be very well regarded from its past customers, with excellent reviews across different ratings websites.

Let’s learn more to determine if they’re really as good as they sound.

eClick Lending Fast Facts

  • Direct-to-consumer online mortgage lender that offers home purchase and refinance loans
  • Founded in 2007, headquartered in Oakbrook Terrace, Illinois
  • A dba of parent company Celebrity Home Loans, LLC
  • Licensed to do business in 38 states and the District of Columbia
  • Funds several billion in home loans annually

eClick Lending is a direct-to-consumer mortgage lender that operates online, meaning you’ll be working from afar to close your home loan.

They offer both home purchase loans for home buyers and refinance loans for existing homeowners.

As mentioned, they are a dba of Celebrity Home Loans, which apparently does several billion in loan origination volume annually.

At the moment, the company is licensed to do business in 38 states and the District of Columbia.

Those states include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

One nice feature about them is their loan officers are apparently available seven days a week, so there should always be someone around to help.

How to Apply with eClick Lending

  • To get started visit their website or call them up on the phone
  • If you go online you’ll need to fill out a short form and a loan officer will get in touch to discuss pricing and eligibility
  • They offer a digital mortgage application that lets you complete most tasks electronically
  • Once submitted you can manage your loan via their smartphone app or online borrower portal

You can either call them directly or visit their website to begin the loan process. Those who choose to go online can click on “Get Started Now.”

From there, you can select a short contact form to fill out for either a purchase, refinance, or mortgage pre-approval.

At that point, a loan officer will reach out to discuss loan pricing and available loan programs, and if you like what you hear, you’ll be able to formally apply.

They offer both a digital mortgage application and a free smartphone app, so you’ve got options when it comes to applying.

Once your loan is submitted, you’ll be able to view your progress, securely upload any necessary documents, and message your loan officer whenever you need assistance.

Because they’re a direct lender, every step of the mortgage process is completed in-house, which should speed things up and keep your personal details more secure.

This includes loan processing, underwriting, closing, and the funding of your home loan.

All in all, they appear to make it easy to apply for a home loan thanks to the use of all the latest technology available.

Loan Programs Offered by eClick Lending

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Conforming loans backed by Fannie/Freddie
  • Jumbo home loans
  • FHA loans
  • VA loans
  • Fixed-rate and adjustable-rate mortgages in various loan terms

eClick Lending’s website is a little light on details when it comes to available loan programs, but they do offer home purchase and refinance loans, including cash out refinances.

In fact, they refer to themselves as cash out experts with unparalleled customer service. So existing homeowners who want to tap their equity may find them to be a good fit.

They also help home buyers, and say they can close loans in as a little as two weeks if you’re on a tight schedule.

It’s possible to get a conventional loan backed by Fannie Mae or Freddie Mac, a government loan such as an FHA loan or VA loan, or a jumbo loan that exceeds the conforming loan limit.

However, they may not offer USDA loans, as it’s not made clear on their website.

But you should be able to choose from a fixed-rate mortgage or an ARM, including a 30-year fixed, 15-year fixed, or a 5/1 ARM.

While they don’t appear to have a super expansive lending menu, they should be able to assist most homeowners in a variety of different scenarios.

eClick Lending Mortgage Rates

eClick Lending says it has incredibly low rates, but for whatever reason doesn’t post them online for us to see.

As such, we’ve got to take their word for it until actually speaking with a loan officer.

This isn’t necessarily a bad thing, but lenders do gain transparency points when they take the time to publicize their mortgage rates.

To get pricing, you’ll need to reach out to a loan officer, either by calling them directly or filling out a short contact form on their website.

Also be sure to inquire about any lender fees, such as a loan origination fee, or separate charges for loan processing and/or underwriting.

Once you know all those details, you can compare their mortgage APR to that of other lenders to see where they stand.

My assumption is they’re probably competitively priced because they’re an online mortgage lender with lower overhead and limited advertising (and lots of positive reviews).

And online lenders typically appeal to customers looking for low rates.

But always put in the time to gather multiple quotes to ensure it’s a good deal, or that a better one isn’t out there.

eClick Lending Reviews

Over at Zillow, eClick Lending has a near-perfect 4.97-star rating out of 5 from nearly 1,100 customer reviews.

That’s doubly impressive given the large number of reviews coupled with the excellent score.

At Bankrate, they have a perfect 5.0 rating from about 350 reviews, with 100% of reviews saying they would recommend this lender.

But wait, there’s more. On SocialSurvey, they have a 4.91-star rating from over 2,200 reviews.

And on Google, they’ve also got a 5-star rating from more than 400 reviews, so it’s clear they’re consistently making their clients very happy.

Lastly, eClick Lending’s parent company is an accredited business with the Better Business Bureau and currently has an ‘A+’ rating based on customer complaint history.

In summary, they say they make mortgages easy and have the technology and many positive reviews to back it up.

If they also offer low rates with limited lender fees, they could be a good choice for an existing homeowner looking to refinance, or even a home buyer who is comfortable working with a lender remotely.

eClick Lending Pros and Cons

The Good

  • Offer a digital, paperless home loan process
  • Can apply online and manage loan via borrower portal
  • Claim to have very low mortgage rates
  • Say they can close loans in as little as two weeks
  • Excellent customer reviews from past customers
  • Parent company is accredited with A+ BBB rating
  • Free smartphone app

The Perhaps Not

  • Not licensed in all states
  • Don’t publicize their rates or fees
  • No physical branch locations
  • Do not offer USDA loans

Source: thetruthaboutmortgage.com

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Just when you think you’ve got this whole credit thing down, some new credit-related phrase creeps into the industry’s vocabulary: DTI ratio, APR, amortization, and the list goes on . Let me introduce you to the world of mortgage credit reporting, which is very different than just “regular credit reporting.” There’s an entire world of intermediary credit reporting companies called Mortgage Reporting Companies that service the massive number of mortgage lenders and brokers. Follow me…

How Mortgage Lenders Gather Your Credit Data

When you apply for a credit card or an auto loan, the lender will buy one of your three credit reports directly from one of the three credit reporting repositories; Experian, Equifax or TransUnion. They’ll then use that information, and the score they bought at the same time, to make their approve/deny decision and set the terms of your new account. That process occurs tens of thousands of times every single day.

When you apply for a mortgage loan, the game changes. Mortgage lenders don’t typically buy one of your credit reports — they buy all three of them. And, if you’re applying jointly with a spouse or someone else, the lender will buy all three of their credit reports, too. So, that’s 6 credit reports and 6 FICO scores (FICO is still the score used in the mortgage industry) of which the lender or broker will take possession.

What is a Residential Mortgage Credit Report (RMCR)?

Now, that’s a lot of credit reports and a lot of pages. It’s also a ton of redundant information. Think about the joint credit card you have with your spouse. That likely shows up on all 6 of your collective credit reports. Does the mortgage lender really need to see the same account 6 times? Of course they don’t.

Because of the large amount of credit report data required by mortgage lenders, the need for an intermediary service exists. This service accesses all of the credit reports required by mortgage lenders from the big 3 credit bureaus and then consolidates them into one easier-to-read credit report. This credit report is called an “RMCR,” or Residential Mortgage Credit Report, and the companies that provide them are referred to as mortgage reporting companies.

These companies act as brokers or resellers of the data maintained by Experian, Equifax and TransUnion. The mortgage lender will subscribe to their services and commonly request a credit report on a mortgage applicant or applicants.  The mortgage reporting company will then go to the big 3 credit bureaus on behalf of the mortgage lender and buy the applicant’s credit reports and FICO scores.

But before they deliver this large amount of information back to the mortgage lender, they’ll combine the information into one RMCR. The credit score information will be displayed in one section, the negative data will be displayed in another section, and things like inquiries and personal identification information will be displayed in their own sections. This merged credit report (often called a “Tri-merge”) is considerably easier to read than reading six separate credit reports is.

How Can I Get a Copy of My RMCR?

If you’ve applied for a mortgage-related loan, you probably have your RMCRs in your closing paperwork, as mortgage brokers and lenders will often give you a copy. It’s a very valuable aggregate of information because it’s a comprehensive study of all of your credit reports and it includes your actual FICO scores, along with the 4 reasons why each of them wasn’t higher.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.

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Today we’ll review a Midwest-based depository bank that is big on home loans, “Central Bank,” which also operates an online lending division known as “Online Central.”

They’re perhaps best described as a neighborhood bank that has embraced the latest mortgage technology to allow for an up-to-date, digital home loan experience.

So if you’re looking for a banking institution that has been around for a while, which operates the old-fashioned way with regard to values and personal service, they could be a good option.

You’ll also get access to the latest technology too, and perhaps a low rate as well since they say they offer “very competitive” interest rates.

Let’s learn more about them.

Central Bank Fast Facts

  • Direct-to-consumer retail mortgage lender backed by a depository bank
  • Offers home purchase loans, refinances, and home equity products
  • Founded in 1902, headquartered in Jefferson City, Missouri
  • Backed by Central Bancompany, a $16-billion bank holding company
  • Licensed to do business in all 50 states and the District of Columbia
  • Also operates an online lending division called “Online Central”

The Central Bank is a direct-to-consumer retail mortgage lender, meaning they offer home loans both online and in-person via their 140 physical bank branches.

You can get a home purchase loan, a mortgage refinance, or a home equity product such as a HELOC.

Their parent company Central Bancompany was founded more than 100 years ago, and is headquartered in Jefferson City, Missouri.

Those bank branches I mentioned are located throughout the Midwest, from as far west as Colorado all the way east to North Carolina.

Central Bank is a direct seller to Fannie Mae and Freddie Mac, and have fully delegated authority to originate government-backed solutions such as VA and FHA loans.

This means they can make lending decisions quickly in-house, and ideally process your loan faster than their competitors.

How to Apply for a Home Loan with Central Bank

  • You can call, visit a branch, or simply apply directly online
  • They offer a digital mortgage application powered by Blend
  • Allows you to complete most tasks electronically like eSigning and document upload
  • Track your loan progress 24/7 via their online borrower portal

You’ve got several options when it comes to getting a mortgage with Central Bank.

Those who live in the Midwest can visit a physical branch if they choose, and those who prefer to work remotely can either call them up directly or simply visit their website to get the ball rolling.

Regardless of how you make contact, they offer a digital mortgage application powered by fintech company Blend that lets you perform most tasks electronically.

This includes linking your financial accounts, eSigning disclosures, and scanning/uploading any necessary documentation.

Once your loan is submitted, you’ll be able to manage everything online via the borrower portal to ensure you stay in the know.

If you’re purchasing a home, you can also get a pre-approval letter generated to show the listing agent and home sellers that you mean business.

All in all, they make it easy to apply for a mortgage, and pride themselves on employing the most experienced loan officers out there.

Home Loan Programs Offered by Central Bank

  • Home purchase loans
  • Refinance loans: rate and term, streamline, cash out
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • FHA loans
  • USDA loans
  • VA loans
  • Fixed-rate mortgages: 15-, 20-, and 30-year loan terms available
  • Adjustable-rate mortgages: 5/1 and 7/1 ARMs
  • HELOCs and home equity loans

One perk to using Central Bank is their wide array of available loan programs. Like other lenders, they offer home purchase financing and refinance loans.

But unlike many others, you can also get a home equity loan or home equity line of credit (HELOC), along with anything from a conforming loan backed by Fannie/Freddie to a USDA loan or jumbo home loan.

They lend on all major residential property types, including single-family homes, condos/townhomes, vacation homes, investment properties, and 1-4 unit properties.

Both fixed-rate and adjustable-rate mortgages are available in a variety of different loan terms to suit all needs.

Central Bank Mortgage Rates

While they don’t publicize their mortgage rates on their website for one reason or another, you can often find them on third-party mortgage comparison sites like Zillow or Bankrate.

From what I came across recently, they had some of the lowest mortgage rates listed, perhaps only bettered by one or two other lenders, and just slightly.

In other words, you should be able to land a low rate if you choose to go with Central Bank or Online Central Mortgage.

Additionally, they say they offer home loans without lender fees, so you shouldn’t have to worry about paying a loan origination fee, or additional fees for things like underwriting and processing.

Because they offer the latest mortgage technology, they’re able to pass along the savings from a streamlined process onto you.

But as always, be sure to put in the time to shop around to ensure there isn’t a better deal out there from a competing bank or lender.

Central Bank Mortgage Reviews

On Zillow, Central Trust has a perfect 5-star rating out of a possible 5 from more than 400 customer reviews.

I can’t recall seeing a perfect score for any lender on Zillow before, so that’s certainly an achievement, especially since they’ve got so many reviews.

You can also see individual loan officer reviews via Zillow, which are worth checking out if you want to get paired with someone really highly-rated.

Over at Bankrate, they also have a perfect 5-star rating from 50 customer reviews, with 100% of reviews saying they’d recommend this lender.

And on Google, they’ve got a similarly strong 4.7-star rating from 33 customer reviews.

Lastly, while the company itself isn’t Better Business Bureau accredited, they do currently hold an ‘A’ rating based on customer complaint history.

In summary, Central Bank and Online Central (their online division) both come highly-rated and offer the latest mortgage technology to make getting a home loan easy.

Additionally, they appear to offer competitive mortgage rates without lender fees, and employ seasoned loan officers who seem to know what they’re doing.

As such, they could be a suitable choice for both new home buyers and existing homeowners looking to refinance to a lower rate or tap into their equity.

Central Bank Pros and Cons

The Good

  • Offer a digital mortgage experience powered by Blend
  • Can also apply in-person at a local branch if you prefer
  • More than 140 physical branch locations nationwide
  • Say they offer competitive mortgage rates with no lender fees
  • Lots of loan programs to choose from including HELOCs
  • Excellent customer reviews from past customers
  • Free mortgage calculators and home buyer guides online
  • They service their loans

The Perhaps Not

  • Do not list mortgage rates on their website

Source: thetruthaboutmortgage.com

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Today we’ll check out a Pacific Northwest mortgage lender by the name of “Evergreen Home Loans” that has more than three decades of home financing experience.

That’s a lot more than your average mortgage lender out there, and speaks to their successful business model, which marries technology with human touch.

Despite being around since the late 1980s, they’ve taken the time to update their website and integrate the latest technology, including a digital mortgage application, smartphone app, and eClose signing ability.

Let’s dig in to learn more about them.

Evergreen Home Loans Fast Facts

  • Direct-to-consumer retail mortgage lender with branches in six states
  • A dba of Evergreen Moneysource Mortgage Company
  • Offers home purchase, construction, and refinance loans
  • Founded in 1987, headquartered in Bellevue, Washington
  • Funded roughly $3.5 billion in home loans last year
  • Licensed to do business in 9 western states currently
  • Their Security Plus Seller Guarantee may provide an edge in a competitive housing market

At the moment, the company is licensed primarily on the West Coast, in the states of Alaska, Arizona, California, Colorado, Idaho, Nevada, Oregon, Washington, and Wyoming.

Despite that, they still produced about $3.5 billion in home loans last year, with more than two-thirds of it from home purchase financing, and the remainder mortgage refinances.

Much of their production consists of conventional loans, though they also do a good chunk of FHA lending, VA loans, and jumbos.

About 60% of total loan origination volume came from their home state of Washington.

How to Apply with Evergreen Home Loans

  • To get started simply visit their website and click on “apply for a loan”
  • They offer a so-called Digital Mortgage Advantage that is backed by the latest tech
  • Allows borrowers to scan/upload or digitally verify assets by connecting their accounts
  • And eClose by electronically signing most closing documents from anywhere using a computer or mobile device

Evergreen Home Loans says it believes in technology, but also acknowledges that it takes a human hand to get its customers home.

That means you’ll have a dedicated loan officer and processor who will help you every step of the way, though you can also perform most tasks on your own if you wish.

Their digital mortgage application powered by ICE Mortgage Technology is known as “Digital Mortgage Advantage,” and it allows you to apply for a home loan from any device, including their free mobile app.

You can scan/upload requested documents and/or digitally verify your checking, savings, retirement, or investment statements using your own bank’s login credentials.

When it comes to sign, they offer an eClose option where you can eSign most closing documents from anywhere using a computer or mobile device.

To get started, you can visit their website and browse their loan officer directory to view bios and contact info, or simply hit apply and get started on your own.

It’s always recommended to get mortgage rate pricing first, then proceed to the application if you’re happy with what you hear.

Either way, they appear to make it easy and fast to apply for a mortgage thanks to their use of the latest technology available.

And they’ve also got physical offices in six states if you prefer to work face-to-face.

Loan Programs Offered by Evergreen Home Loans

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Home renovation loans
  • New construction loans
  • Conventional loans backed by Fannie and Freddie
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans

One thing Evergreen Home Loans seems to excel at is home purchase lending. Part of that could have to do with their robust mortgage pre-approvals and their Security Plus Seller Guarantee.

That guarantee gives the seller(s) $5,000 if they’re unable to close the loan, enough to perhaps entice them to accept an Evergreen loan offer with a Security Plus Seller Guarantee over a higher-priced bid.

They also offer construction-to-permanent financing if you’re building a home, including a one-time close (OTC) loan that allows for an all-in-one home loan experience.

Those who already own a home can take advantage of a home renovation loan, such as the popular FHA 203k program, or a mortgage refinance, including rate and term, cash out, or streamline options.

They offer all the major home loan types, including conventional, jumbo, FHA, VA, and USDA, with reverse mortgages and second mortgages perhaps the only options missing.

You can get a fixed-rate mortgage like the 30-year or 15-year, or an adjustable-rate mortgage, such as the 5/1 ARM.

CashUp by Evergreen

If you’re constantly getting outbid, the “CashUp by Evergreen” program could help you land your dream home.

First, you get pre-approved for a mortgage with a fully underwritten credit package. Then you can shop for a home as a cash buyer with no financing or appraisal contingency.

This allows you to beat out the competition who often must rely on home loan financing to close the deal.

Chances are the seller will favor your all-cash offer above others that require a mortgage, which is never a guarantee.

Once your offer is accepted, Evergreen will purchase the home on your behalf and then transfer it to you after permanent financing is established.

As you might suspect, you must use Evergreen Home Loans for your permanent financing.

The CashUp by Evergreen program is currently available in Idaho, Nevada, and Washington.

Only owner-occupied and second homes are eligible. Condos and manufactured homes are not permitted.

Evergreen Home Loans Rates

One slight drawback to Evergreen Home Loans is their lack of transparency regarding mortgage rates. You won’t find them displayed on their website.

While this doesn’t mean they’re necessarily good, bad, or otherwise, you’ll need to speak with a human loan officer first to see where they stand.

The same is true of their lender fees, which don’t appear to be listed on their website.

When you get in touch, make sure you inquire about both their interest rates and lender fees, which collectively make up the mortgage APR.

Once you’ve got all the details you can use their mortgage quote to shop and compare with other banks and lenders out there.

Evergreen Home Loans Reviews

On Zillow, Evergreen Home Loans has an almost flawless 4.97-star rating out of 5 from about 1,600 customer reviews, with many saying the interest rate and/or closing costs were lower than expected.

And on SocialSurvey, they’ve got a similarly stellar 4.93-star rating from nearly 10,000 reviews, which speaks to their consistency in the customer satisfaction department.

They’ve also got excellent reviews at many of their individual branch locations on Google if you want to search local, physical offices.

While they aren’t an accredited business with the Better Business Bureau, they do hold a perfect ‘A+’ rating based on customer complaints.

In summary, Evergreen Home Loans seems like a good fit for both home buyers and those interested in building or renovating a new home.

They also offer a guarantee to sellers that your home loan will close, which could give you a serious leg up in a competitive housing market.

Additionally, they could be a good choice for existing homeowners looking to refinance because they offer a wide array of loan programs and have lots of physical locations for those who prefer a local touch.

Evergreen Home Loans Pros and Cons

The Good Stuff

  • Can apply for a home loan online without human assistance
  • Offer a digital mortgage application powered by ICE Mortgage Technology
  • Security Plus Seller Guarantee for home buyers in competitive markets
  • Lots of different loan programs to choose from including construction loans and jumbos
  • Also have physical locations in six states if you prefer in-person consultation
  • Excellent reviews from past customers across all major ratings websites
  • A+ BBB rating
  • Variety of free mortgage calculators and mortgage glossary on their website
  • Free Evergreen mobile app for smartphones

The Cons

  • Only licensed in states on the West Coast
  • Do not list mortgage rates or lender fees

(photo: Frank Olivier Schwellinger)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll check out “Directors Mortgage,” a Portland, Oregon-based mortgage lender that says it “takes a community-first, people-focused approach” to the home loan business.

This means you can actually sit down and speak with a human being about your homeownership goals instead of filling out an online form, assuming you prefer face-to-face interaction.

And those human beings are apparently happy because the company is consistently recognized as one of the best companies to work for in Oregon. So hopefully they’ll make you happy too.

They are also one of the top philanthropic businesses in the area and involved with many of the local sports teams, including youth teams and pros like the Portland Thorns and Portland Timbers.

Let’s learn more about this local mortgage lender to see if they could be a good fit for you.

Directors Mortgage Fast Facts

  • Independent retail direct-to-consumer mortgage lender
  • Largest privately owned mortgage company headquartered in Oregon
  • Locally owned and operated in Lake Oswego since 1998
  • Offer home purchase loans, refinances, construction loans, and reverse mortgages
  • Currently licensed to do business in eight Western states
  • Funded nearly $1.5 billion in home loans last year
  • Also operate a wholesale lending division called USA Direct Funding

Directors Mortgage is a retail direct-to-consumer mortgage lender that was founded back in 1998 by current CEO Mark J. Hanna.

They are one of the largest independent mortgage companies located in the Northwest, and say they don’t take a “one-size fits all” approach like some of the bigger banks.

They offer many different types of loans, including home purchase financing, mortgage refinances, construction loans, and reverse mortgages.

Directors Mortgage appears to be focused on the Western United States, with licensing and physical branches in eight states, including Arizona, California, Colorado, Idaho, New Mexico, Oregon, Utah, and Washington.

Based on the most recent HMDA data, they were most active in Oregon, where they originated nearly a billion in home loans.

They also funded about $500 million in mortgages in the state of Washington, and appear to be growing in the other states where they’re licensed.

Roughly 45% of their overall volume comes from home purchase loans, with the remainder from refinances or reverse mortgages.

Aside from their main retail lending channel, they also operate Direct Portfolio Lending (DPL), which specializes in funding for clients who don’t fit the conventional mortgage mold.

Their offerings include investor fix & flip loans, bridge loans, spec construction loans, and commercial bridge loans, with interest-only options available.

Another brand under Directors is “Mortgage Monkey,” which specializes on providing home loan financing to the LGBTQ+ community.

They also operate a wholesale lending division called USA Direct Funding for mortgage broker partners.

How to Apply with Directors Mortgage

  • You can apply in person, over the phone, or via a secure online application
  • Once signed up you can eSign disclosures and securely upload any documents needed for processing
  • Their in-house underwriting and appraisal system allows borrowers to close quickly
  • After approval, you’ll be able to track loan progress via the online borrower portal from any device

While Directors Mortgage is big on the human element of mortgage lending, they aren’t a stranger to the latest technology.

In fact, if you wish it’s possible to complete a digital mortgage application without any human assistance whatsoever.

Either way, you’ve got options, whether you prefer to apply via phone, in-person, or from the convenience of your smartphone.

In terms of tech, they allow you to eSign disclosures, scan/upload necessary documents, and track loan progress 24/7 via the secure online borrower portal.

And their in-house loan underwriting and expedited appraisal system facilitates fast closings for borrowers.

Those who are buying a home can also take advantage of the so-called “Pre-Approval Advantage Certificate.”

It provides a reimbursement of up to $5,000 earnest money (to the buyer or seller) in the event the purchase agreement is cancelled due to financing.

That could give you the edge in a competitive housing market where bidding wars are the norm.

Loan Programs Offered by Directors Mortgage

  • Home purchase loans
  • Refinance loans: rate and term, cash out, debt consolidation, streamline
  • Home construction loans
  • Renovation loans
  • Reverse mortgages
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • FHA/USDA/VA loans
  • Jumbo home loans
  • Relocation loans

One thing Directors Mortgage isn’t short of is home loan programs.

They seem to offer just about everything, whether it’s a home purchase, construction loan, bridge loan, refinance, or a reverse mortgage.

You can get a conforming loan, jumbo, or a government-backed loan, such as an FHA loan or VA loan.

They also have a dedicated relocation team if you happen to be moving that can help with all the details, such as sending reimbursable relocation costs directly to your employer immediately after closing.

You can get a loan on any major residential property type, including a single-family home or condo, vacation home, or multi-unit investment property.

They appear to mostly originate 30-year and 15-year fixed mortgages, along with adjustable-rate mortgages like the 5/1 and 7/1 ARM.

Directors Mortgage Rates

One area where we could use some more information is in the pricing department.

Directors Mortgage doesn’t openly advertise its mortgage interest rates online like some other lenders.

As such, it’s impossible to know how competitive they are without first speaking to a loan officer about pricing and lender fees.

So if you’re planning to use Directors Mortgage, be sure to take the time to get a quote first, including what lender fees they charge if any.

Then put in the time to get quotes from other banks, lenders, and mortgage brokers to see where they stand.

While service is certainly important, so is cost if you plan to keep your mortgage for many years to come.

Directors Mortgage Reviews

On Zillow, Directors Mortgage has an excellent 4.95-star rating out of a possible 5 from about 100 customer reviews.

Many indicate that the interest rate received was lower than expected, which is good news on the loan pricing front.

On Google, their Lake Oswego location has a 4.3-star rating out of 5 from about 33 reviews, also a fairly strong rating.

You can also find ratings for other locations on both Google and Yelp, so take the time to review the location(s) nearest you.

Lastly, they are Better Business Bureau accredited, and have been since 2006.

They currently enjoy an ‘A+’ rating based on complaint history, for which just one has been closed in the past three years.

In summary, Directors Mortgage could be a viable candidate for both new home buyers and existing homeowners looking for better terms on their mortgage.

They offer a pre-approval guarantee that could give buyers a leg up, and if you want to work with a local, independent mortgage company, they’re big in the Pacific Northwest.

Directors Mortgage Pros and Cons

The Good

  • Can apply for a mortgage online, by phone, or in-person
  • Offer the latest technology and in-house underwriting for quick closings
  • Wide product selection to choose from including jumbos and reverse mortgages
  • Pre-Approval Advantage Certificate for home buyers looking for an edge
  • Excellent customer reviews
  • A+ BBB rating, accredited business since 2006
  • Locally owned and operated for those who like to support local
  • Lots of physical branches in the Pacific Northwest
  • Free mortgage calculators and mortgage glossary on their website

The Maybe Not

  • Only licensed in a handful of Western states
  • Do not publicize mortgage rates or lender fees

(photo: Satish Viswanath)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll review “Texas Trust Home Loans,” which refers to itself a leading, low-cost online mortgage company based in, you guessed it, Texas!

The company makes three big declarations: that they offer low rates, can close your loan in just 21 days, and are top rated based on customer reviews.

Let’s find out more to determine if they are living up to those lofty goals and ultimately making their clients happy.

Texas Trust Home Loans Fast Facts

  • Direct mortgage lender that offers home purchase and refinance loans
  • Founded in 2015, headquartered in Dallas, Texas
  • A dba of parent company American Heritage Capital, LP
  • Licensed to do business in five states nationwide
  • Low-cost online mortgage lender that aims to close loans in just 15 to 21 days

Texas Trust Home Loans is a Dallas-based direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinance loans.

This means they serve both existing homeowners and those looking to purchase a home, remotely via their call center in Texas.

If you apply, you’ll be working with a loan team online and/or by phone to close your loan, with their aim to fund loans in just 15 to 21 days, which is super fast.

The company got its start back in 2015 and is actually a dba of parent company American Heritage Capital, LP, which also operates brands like Lendova.

At the moment, they are licensed in just five states nationally, including Colorado, Florida, Texas, Virginia, and Washington.

How to Apply with Texas Trust Home Loans

  • Call or simply visit their website to begin your loan application
  • You can search real-time mortgage rates then apply if you like what you see
  • They offer a digital home loan experience from start to finish using the latest tech
  • Most tasks can be completed electronically including secure document upload and eSigning of disclosures

To get started with Texas Trust Home Loans, you can call them up directly on the phone or just head over to their website.

My preference is their website, where you can search daily mortgage rates, then compare the many loan options side-by-side to determine which is best for your situation.

Assuming you find something you like, there’s a “next” button located next to each option that leads you directly to a digital mortgage application.

At that point, simply sign up, fill out the online application, upload any required documents, review and electronically sign your loan disclosures online, and you’ll be off to the races.

They say their All Digital Mortgage could save you up to $4,250 due to lower overhead, with the savings passed onto their customers.

Once submitted, you can sign in 24/7 to check loan status, access your to-do list, or get in touch with your loan team if you have questions or concerns.

Texas Trust Home Loans appears to make it easy to apply for and close a loan quickly thanks to their use of the latest fintech.

Loan Programs Offered by Texas Trust Home Loans

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • FHA loans
  • Fixed-rate loans: 10, 15, 20, 25, and 30 year terms
  • Adjustable-rate loans: 5, 7, and 10-year ARMs

Texas Trust Home Loans Rates

One advantage to shopping with Texas Trust Home Loans is the fact that you can view mortgage rates directly on their website.

No need to call anyone or reveal any of your personal information first. Simply head to their website and click on “Rates.” They also have some sample mortgage rates right on their homepage.

From there, you’ll be able to tailor your search by providing borrower and property details to get accurate, up-to-date mortgage rates.

You’ll see multiple options that vary in closing costs, with the cheapest interest rates displayed requiring discount points be paid, and the more expensive rates requiring nothing out-of-pocket thanks to lender credits.

This allows you to decide on a perfect combination of rate and fee, whether you want the lowest payment possible or the least amount of fees.

They also advertise on Bankrate, and from what I saw were charging a $1,495 loan origination fee.

It’s unclear if they charge this fee on all their loans, or only via third-party sites where they advertise.

Regardless, it appears that all their loans can be structured so borrowers don’t pay any fees out-of-pocket thanks to those credits.

While Texas Trust Home Loans does not charge an application fee, they do require an upfront payment between $450.00 to $1200.00 (depending on the property type and location) for the cost of the home appraisal, which is non-refundable.

This is pretty standard practice, as all mortgage lenders tend to want some assurance that you won’t apply then go elsewhere for a better deal.

All in all, they seem to offer low rates as advertised, but do take the time to gather several mortgage quotes to ensure you snag a good deal.

Texas Trust Home Loans Reviews

On Bankrate, the company has a perfect 5-star rating from nearly 600 customer reviews, with literally only a couple not rated 5/5.

Additionally, 100% of those who reviewed the company would recommend them to others.

Over at Google, Texas Trust Home Loans has a similarly strong 4.7-star rating from about 300 reviews, so it’s clear they are earning top marks in customer satisfaction consistently.

Their parent company American Heritage Capital isn’t Better Business Bureau accredited, but does have an ‘A+’ rating based on complaint history.

Furthermore, they’ve only had one complaint closed in the past three years, and none in the past 12 months.

In summary, Texas Trust Home Loans seems to live up to their promise of offering low rates, fast closings, and stellar customer service.

I particularly like their transparency when it comes to mortgage rates and fees, and the fact that you can complete most tasks on a self-serve basis if you’re comfortable doing so.

Texas Trust Home Loans Pros and Cons

The Pros

  • Offer a digital home loan experience
  • Can apply for a mortgage online without any human assistance whatsoever
  • Openly display their mortgage rates on their website without need to login
  • Transparent about all fees including lender and third-party charges
  • Appear to offer low interest rates with limited or no lender fees
  • Plenty of loan programs to choose from
  • Their parent company has a A+ BBB rating
  • Online learning center where they educate on mortgages
  • Excellent reviews from past customers across different ratings websites

The Cons

  • Only licensed in a small handful of states
  • Limited physical locations
  • Don’t appear to offer VA or USDA loans

(photo: Ray Bodden)

Source: thetruthaboutmortgage.com

Apache is functioning normally

The nation’s top mortgage lender has lowered the minimum credit score required for an FHA loan, according to American Banker.

Going forward, the bank is accepting FHA loan applications from borrowers with credit scores as low as 500, though they must come up with a 10 percent down payment and sport a maximum debt-to-income ratio of 31 percent.

That seems like a pretty safe bet, given the fact that home prices have likely seen bottom or are relatively close to bottoming out.

Previously, Wells only accepted FHA loans from borrowers with credit scores of 600 and upwards.

The move was made following pressure from HUD, which oversees FHA lending, along with affordable housing advocates, largely because FHA loans are intended to serve the underserved, not everyday Joes.

Back in November, Wells and other top lenders were actually raising minimum credit score requirements on FHA loans…

It is believed that loans originated via mortgage brokers and correspondent lenders still carry harsher underwriting standards, with the minimum credit score 620 or 640.

At the end of the third quarter of 2010, just 3.8 percent of FHA loans had scores below 620 or no credit score, compared to 50.4 percent as of the end of 2008.

Back in mid-2010, the FHA announced a minimum credit score of 500 on all loan programs, with a 580 score needed to qualify for the flagship 3.5 percent down payment program.

Source: thetruthaboutmortgage.com