[New] FAIR LENDING?

Ratios, which are borrowed from an employment context, measure the rate of approval for protected status applicants for the control group, in this case lucre.)

“Our analysis shows that decades of policy interventions and economic reforms to equalize lending opportunities have largely failed to reduce the gap in loan approvals” between most minorities and Whites, the report maintains. While last year’s slight increase in underwriting fairness is an encouraging sign, we believe the persistent disparities in mortgage lending for Black and Native American borrowers deserves policymakers’ attention.”

NAREB has some thoughts on that score. The Marylandbased group’s recommendations are comprehensive. But, according to its study, “they recognize that significant actions must be taken to genuinely offer” Blacks a shot at the brass ring, otherwise known as the American Dream.

Release The Gses

The report lists six changes it deems necessary to put Black home buyers on an even playing field. But above those, fixing “the broken housing finance system itself” by turning Fannie Mae and Freddie Mac into the federal corporation structure is Job One.

NAREB says the “most direct route” to accomplish its goals is to release the GSEs from conservatorship and re-charter them as a single and independent federal housing and community investment corporation that would eschew lucre and focus on expanding affordable housing. “Rather than profits,” the group says, “the new agency could lower borrowing costs for all consumers by eliminating fees and risk-based pricing.”

Here are the other changes NAREB would like to see:

• Eliminate loan level price adjustments — Assessing higher costs to those who are weaker financially is counterintuitive, NAREB maintains, because it makes financing less affordable and increases the risk of default. “LLPAs unfairly and disproportionately penalize the populations that were principal victims of exploitive lending.” change that so SPCPs could “ultimately provide an alternative and productive lending channel to meet the credit need” of underserved markets.

• End discriminatory and abusive appraisal practices — Here, the group simply says more needs to be done to address what it calls “the pervasive racial bias” in home valuations and “undermine the major source of wealth” in Black communities.

• Fix the broken and out-of-date housing finance system — Noting that today’s housing finance system was built in the 1930s on “powerful discriminatory pillars,” the report says it is not equipped to address the housing needs in older urban communities, nor what it designed to address the racial economic disparities that exist today.

• End fees to access downpayment assistance — Some lending programs charge as much as 1.5 points for help with the downpayment because it is considered a risk element. But that’s “unfair and irrational,” the group argues because it contradicts the purpose of aid, which is to lower the cost to borrowers and decrease the overall risk. “Helping borrowers increase the down payments improves mortgage accessibility and sustainability.”

• Recalculate the impact of student loan debt — Also a contradiction is the treatment of deferred student debt as part of the borrower’s debt-to-income ratio, NAREB maintains, because it ignores the possibility of greater income in the future. “If borrowers cannot receive credit for future earnings increases, why should they be penalized for not-as-yet required education loan repayments?” the report asks.

• Leverage special purpose credit programs — SPCPs have been around for years as a way of meeting the credit needs of historically disenfranchised populations. But they have not become a significant vehicle for supporting affordable housing. NAREB, along with the National Fair Housing Coalition, which is leading the charge, would

“America needs a 21st Century housing finance system that has adequate capacity and flexibility to innovate and create affordable homeownership programs that can create millions, not hundreds, of new Black homeowners,” the report contends.

Given the historic level of systemic, federally sanctioned, and enforced discrimination, the report concludes, it is impressive that African Americans have achieved any meaningful level of homeownership and speaks to their tenacity. But the time is long overdue for change.

White households did not achieve 65 percent ownership rates without substantial federal assistance, NAREB points out. Now, more than ever, minority buyers need the same. n

Lew Sichelman is a contributing writer to National Mortgage Professional magazine. He has been covering the housing and mortgage sectors for 52 years. His syndicated column appears in major newspapers throughout the country. He also has been real estate editor at two major Washington, D.C., dailies and spent 30 years on the staff of National Mortgage News, formerly National Thrift News.

Acra Lending Lake Forest, CA acralending.com sales@acralending.com (888) 800-7661

Non-QM / Jumbo

DESCRIPTION OF PRODUCTS

OR SERVICES: Acra Lending is the leader in Non-QM Wholesale and Correspondent lending programs. Offering a range of programs and services geared toward helping mortgage professionals and borrowers achieve their purchase and investment goals. We are committed to providing simplicity, consistency and an optimal customer experience.

STATES LICENSED: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY

Angel Oak Mortgage Solutions Atlanta, Georgia angeloakms.com info@angeloakms.com (855) 631-9943

Angel Oak Mortgage Solutions is the leader in non-QM.

DESCRIPTION OF PRODUCTS OR SERVICES: We offer alternative mortgage solutions for originators throughout the country helping borrowers who don’t fit Agency guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.

STATES LICENSED: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY, Puerto Rico, U.S. Virgin Islands

Arc Home LLC Mount Laurel, NJ business.archomellc.com sales@archomeloans.com (844) 851-3600

Multi-channel mortgage leader with exceptional service and comprehensive mortgage solutions.

DESCRIPTION OF PRODUCTS OR SERVICES: When it comes to choosing your lending partner, there are many things to consider. Our products set the standard in the industry for innovation. Since that innovation is in our DNA, we will always be on the cutting edge of what matters most to you and your borrowers. At Arc Home, our priority is to provide the best customer experience from registration to closing, and we continue to invest in that philosophy every day.

Champions Funding Gilbert, AZ champstpo.com Wholesale@ChampsTPO.com (949) 763-9494

Mission Driven Non-QM + CDFI Wholesale Lender

Description Of Products

OR SERVICES: Champions

Funding, LLC is a privately-owned wholesale lender providing NonQM loan options for mortgage brokers and their customers. As a Community Development Financial Institution (CDFI), Champions Funding, LLC empowers its Broker Partners to fulfill the dreams of their diverse homeowners as well as realize the mission of serving low-income and underserved communities.

STATES LICENSED: AZ, CA, CO, CT, DC, FL, GA, HI, IL, IA, MD, MI, NJ, NC, OR, PA, SC, TN, TX, UT, VA, WA

Global Integrity Finance LLc McKinney, Texas globalintegrityfinance.com toby@globalintegrityfinance. com 2145485190

DSCR Rental NO DOC Loans

DESCRIPTION OF PRODUCTS

OR SERVICES: As a direct, private lender, Global Integrity Finance takes a common-sense approach to underwriting, with all approvals made in-house. We are dedicated to providing quick responses to timesensitive loans, often times with the ability to close in as few as 3 business days. At Global Integrity Finance, we value referrals and our brokers are protected. We are committed to the highest level of customer service, because our success thrives in building relationships.

STATES LICENSED: AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI

Impac Mortgage Corp. Irvine, CA impacwholesale.com wholesale@impacmail.com (949)4756284

DESCRIPTION OF PRODUCTS OR SERVICES: Impac is a national leader in B2B lending with a long heritage of building successful relationships. We’re committed to great pricing, fast decisions, and sensible alternative products, like our comprehensive Non-QM suite. It’s why we opened our doors in 1995 and why they’re still open today.

STATES LICENSED: AL, AK, AZ, AR, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI,

STATES LICENSED: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

LoanStream Mortgage Irvine, CA loanstreamwholesale.com (800) 760-1833

DESCRIPTION OF PRODUCTS OR SERVICES: LoanStream partners directly with mortgage brokers to provide access to a variety of home loan programs directly to their clients including Non-QM, Government and Conventional loan programs. Including propriety loan loan programs exclusive only to LoanStream mortgage.

STATES LICENSED: AZ, CA, CO, CT, DE, DC, FL, GA, HI, IL, IN, KY, LA, ME, MD, MA, MI, MN, MT, NV, NH, NJ, NM, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI

Luxury Mortgage Corp. Irvine, CA luxurymortgagewholesale.com tpomarketing@ luxurymortgage.co (949) 516-9710

Non-QM, Wholesale, Delegated Correspondent, Non Delegated Correspondent

DESCRIPTION OF PRODUCTS luxurymortgagecorrespondent. com

OR SERVICES: The Simple Access® Non-QM suite of products was built around the idea that it doesn’t have to be complicated to finance a home. We have created a diverse selection of borrower friendly programs that are simple, innovative, and flexible. For more information on our Correspondent division, visit www.

STATES LICENSED: AL, AK, CA, CO, CT, DC, DE, FL, GA, IL, LA, ME, MD, MA, MI, MN, NV, NH, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI, WY

Civic Financial Services Redondo Beach, CA www.civicfs.com carolyn.pham@civicfs.com (877) 472-4842

CIVIC delivers fast, honest, simple lending for real estate investors.

Description of your products or services.

DESCRIPTION OF PRODUCTS OR SERVICES: CIVIC Financial Services is a private money lender, specializing in the financing of non-owner occupied residential investment properties.

CIVIC provides Mortgage Brokers and Real Estate Investors with a fast and cost effective funding source for their real estate investment needs.

STATES LICENSED: AZ, CA, CO, FL, GA, HI, ID, IL, IN, LA, MD, MA, MI, MN, NV, NJ, NC, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI

Deephaven Mortgage Charlotte, North Carolina deephavenmortgage.com info@deephavenmortgage.com (800)983-0457

Founded in 2012, Deephaven is a national, Non-Agency/Non-QM mortgage provider.

DESCRIPTION OF PRODUCTS OR SERVICES: A full-service innovator in the Non-Agency/Non-QM mortgage space helping millions of Americans unable to qualify for a traditional, governmentbacked mortgage to achieve their dreams of homeownership. Available through both wholesale and correspondent channels, our differentiator is our borrower-centric culture and service delivery model. Particular strengths include our own in-house underwriting and collaborative teams that directly support our national network of independent mortgage brokers and loan officers.

STATES LICENSED: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WY

Finance of America Mortgage Conshohocken, PA

FOAmortgage.com customerrelations@ financeofamerica.com (800) 355-5626

Flexible mortgage solutions designed with unconventional borrowers in mind

DESCRIPTION OF PRODUCTS OR SERVICES: Are you looking to help a wider range of borrowers? Finance of America Mortgage offers loan options outside of standard conventional guidelines. Our Two-X Flex Suite of mortgage solutions was specifically designed with unconventional borrowers in mind. It redefines qualifying borrowers without the use of tax returns and with as little as 12 months of self-employment. Join the team at Finance of America Mortgage to offer your borrowers more flexibility. Visit joinFAMtoday.com to apply now.

STATES LICENSED: Puerto Rico U.S. Virgin Islands All U.S. States

First National Bank of America East Lansing, MI www.fnba.com/wholesale requests@fnba.com (800) 400-5451

DESCRIPTION OF PRODUCTS

OR SERVICES: With over 65 years of lending experience, First National Bank of America specializes in Non-QM loans, nationwide.

• Alternative Income Documentation Options • 12 months only of income history

• Self-Employed/1099

• ITIN or SSN

• Recent Credit Events Our alternative mortgage solutions are designed to help people turn homeownership dreams into a reality in the Retail, Wholesale or Correspondent space visit: www.fnba.com/wholesale www.fnba.com/correspondent www.fnba.com/mortgage

Equal Housing Lender

STATES LICENSED: All U.S. States

PCF Wholesale Tustin, CA pcfwholesale.com Marketing@pcfwholesale.com (714) 955-5700

DESCRIPTION OF PRODUCTS

OR SERVICES: Build your 2022 pipeline with PCFWholesale. com , the home of the EZ DSCR and Alt Choice Non QM Products. We make NonQM E-Z. Direct Wholesale Lender Licensed in 38 States. We love 1-4 and 5-8 unit properties. Ask about our Preferred Lender Program and our on time closing commitments to you!

STATES LICENSED: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, NV, NH, NJ, NM, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA,

Quontic Bank New York, NY quonticwholesale.com sschnall@quonticbank.com (888) 738-9016

No Ratio & Lite Doc - Owner Occupied & Investor

DESCRIPTION OF PRODUCTS

OR SERVICES: Our unique Community Development Loan programs help historically excluded borrowers look beyond income documentation to help make homeownership dreams a reality. Quontic is exempt from Dodd Frank’s ATR requirements. This enables us to offer our unique Owner Occupied - No Ratio (no income stated & no DTI calculated) and Lite Doc (borrower prepared P&L) loans to credit-worthy borrowers. Quontic also offers a Fast Track underwriting process. Get started growing your business with Quontic Wholesale.

STATES LICENSED: All U.S. States

Stratton Equities

Pine Brook, NJ strattonequities.com info@strattonequities.com (800) 962-6613

DESCRIPTION OF PRODUCTS

OR SERVICES: Stratton Equities is the Leading Nationwide Direct Hard Money & NON-QM Lender that specializes in fast & flexible lending processes. • Fix and Flip • Soft Money Loans • Cash Out — Refinance

Fixed Commercial Loans

Commercial Bridge Loans

Bridge Loans

Stated Income/No-Income

Verus Mortgage Capital Washington, DC verusmc.com sales@verusmc.com (833) 862-3863

Full-service correspondent investor offering residential nonQM and investor rental programs

DESCRIPTION OF PRODUCTS

Rental Loans

Verification Loans

Foreclosure Bailout Loan • NO-DOC • Blanket Loans

Fixed Rental Programs • Multi-Family Loan

No Upfront Fees! No Junk Fees! No Tax Returns!

STATES LICENSED: All States except for: AK, ND, NV, SD, UT

OR SERVICES: Verus is the nation’s largest issuer of securitizations backed by nonQM loans. We’ve purchased over $15 billion in expanded, nonagency and offer correspondents an array of expanded non-prime solutions for residential and business purposes. Our flexible lending guidelines, underwriting and pre-purchase diligence tools, and training help correspondents confidently move into non-QM. It’s all we do, and we do it extremely well.

STATES LICENSED: Continental U.S.