lending Archives - Hanover Mortgages

Apache is functioning normally

June 8, 2023 by Brett Tams

Back in the day, if you wanted a loan to pay off your car or credit cards, you’d go to a bank or a credit union, sit down with a loan officer, and wait for them to tell you yes or no as they “crunched the numbers.”

But now peer-to-peer (P2P) lending has come onto the market, offering loans to borrowers directly from individuals — and usually carrying more favorable terms for those without a great credit profile. Borrowers can access up to $50,000 (or more) from lenders, with fixed term repayment scheduled and reasonable interest rates. Investors can also become lenders on P2P platforms, earning interest collected on loans as a passive form of investment income.

Let’s break down some of the best peer-to-peer lending sites for both borrowers and investors, so you can determine which option is best for you.

What’s Ahead:

Overview of the best peer-to-peer lending sites

Best for those with high credit scores: Prosper
Best for crypto-backed loans: BlockFi
Best for young people: Upstart
Best for a payday loan alternative: SoLo Funds
Best for small businesses: FundingCircle
Best for first-time borrowers: Kiva

Prosper: Best for those with high credit scores

Prosper 210

APR: 6.99% to 35.99%
Term: 2 to 5 years

Prosper is the OG peer-to-peer lender in the market. It was founded in 2005 as the very first peer-to-peer lending marketplace in the U.S. According to their website, they’ve coordinated over $22 billion in loans.

Borrowing with Prosper

If you’re a borrower, you can get personal loans up to $50,000 with a fixed rate and a fixed term from two to five years in length. Your monthly payment is fixed for the duration of the loan. There are no prepayment penalties, either, so if you can pay it off early, you won’t be penalized.

You can get an instant look at what your rate would be and, once approved, the money gets deposited directly into your bank account.

Investing with Prosper

As an investor, you have many options on loans to choose from. There are seven different “risk” categories that you can select from, each with their own estimated return and level of risk. Here’s a look at the risk levels and the estimated potential loss, according to Prosper:

AA – 0.00 – 1.99%
A – 2.00 – 3.99%
B – 4.00 – 5.99%
C – 6.00 – 8.99%
D – 9.00 – 11.99%
E – 12.00 – 14.99%
HR (High Risk) – ≥ 15.00%

As you can see, the lower the letter, the greater the risk of default, hence a higher estimated potential loss. With just a $25 minimum investment, you can spread your risk out across all seven categories to provide your portfolio some balance.

The borrowers that you’re lending to are also above U.S. averages regarding their FICO score and average annual income.

Learn more about Prosper or read our full review.

BlockFi: Best for crypto-backed loans

APR: 4.5% – 9.75%
Term: 12 months

BlockFi is a popular crypto lending platform that offers crypto-backed loans to borrowers and pays out interest to lenders. BlockFi offers instant loans and requires no credit checks for borrowers. All loans are collateralized, meaning borrowers will need to lock in their crypto to borrow against it.

Borrowing with BlockFi

If you’re a borrower, you can get a crypto loan for up to 50% of the value of your crypto, with rates ranging from 4.5% to 9.75% APR, depending on the amount of collateral. Payments are made monthly and are fixed for the duration of the loan.

Interest rates are determined by the amount of collateral deposited and the loan-to-value (LTV) of the overall loan. There is a 2% origination fee on all loans.

Loan rate – 9.75% (50% LTV)
Loan rate – 7.9% (35% LTV)
Loan rate – 4.5% (20% LTV)

Bitcoin (BTC), Ether (ETH), Paxos Gold (PAXG), or Litecoin (LTC) can be used as collateral for the loan, and can be liquidated if the LTV goes above the original LTV of the loan.

Investing with BlockFi

BlockFi offers interest accounts for users who deposit crypto. The funds are used for crypto lending, and interest is paid out in the native crypto deposited. Interest rates vary by cryptocurrency, and range from 0.10% APY up to 7.50% APY. Stablecoins (such as USDC) pay out the highest rates.

Crypto interest accounts are not available to U.S. investors, as BlockFi was sued by the SEC for violating securities laws.

Read our full review.

BlockFi Bankruptcy Notice -On November 10, 2022, BlockFi announced that it had to suspend withdrawals from its platform due to the FTX liquidity crisis. As a result, consumers should not be using the BlockFi platform. As of November 28, 2022, BlockFi officially declared bankruptcy.

Upstart: Best for young people

Upstart 210

APR: 5.6% – 35.99%
Term: 3 or 5 years

Upstart is an innovative peer-to-peer lending company that was founded by three ex-Google employees. In addition to being a P2P lending platform, they’ve also created intuitive software for banks and financial institutions.

What’s unique about Upstart is the way they determine risk. Where most creditors will look at a lender’s FICO score, Upstart has created a system that uses AI/ML (artificial intelligence/machine learning) to assess the risk of a borrower. This has led to significantly lower loss rates than some of its peer companies. Combine that with an excellent TrustPilot rating, and this company is certainly making waves in the P2P marketplace.

Borrowing with Upstart

Borrowers can get loans from $1,000 up to $50,000 with rates as low as 5.6%. Terms are either three or five years, but there’s no prepayment penalty.

Using their AI/ML technology, Upstart looks at not only your FICO score and years of credit history, but also factors in your education, area of study, and job history before determining your creditworthiness. Their site claims that their borrowers save an estimated 43% compared to other credit card rates.

Investing with Upstart

Investing with Upstart is also pretty intuitive. Unlike other P2P platforms, you can set up a self-directed IRA using the investments from peer-to-peer lending. This is a unique feature that many investors should be attracted to.

Like other platforms, you can set up automated investing by choosing a specific strategy and automatically depositing funds.

Upstart claims to have tripled their growth in the last three years due heavily to their proprietary underwriting model, so it might be worth a shot to consider this option.

Learn more about Upstart or read our Upstart review.

SoLo Funds: Best for a payday loan alternative

APR: 0% (tipping optional)
Term: Up to 35 days

SoLo Funds is a peer-to-peer platform that functions as a short-term lender, similar to payday loans. With term lengths only lasting for up to 35 days, loans must be paid back in a narrow timeframe. But instead of charging fees, borrowers can leave an optional tip instead.

SoLo Funds is an affordable option for clients who are in a pinch and need an advance on payday, but there are hefty fees if loans are not paid back within 35 days. Users will need to pay a 10% penalty plus a third-party transaction fee if late.

Borrowing with SoLo Funds

Borrowers can take out loans up to $575 for a maximum of 35 days. Loans do not charge fees, but allow borrowers to select an optional tip amount to lenders.

Loan applications only take a few minutes, and while most loans post within a few days, some may be instantly approved, offering same-day funding with money transferred to borrowers within a few hours.

Loans must be paid back in full within 35 days, or there is a 10% penalty plus other transaction fees. There is no option to roll the loan over.

Investing with SoLo Funds

Lending is fairly straightforward, with a simple sign-up process and no pre-qualifications needed. Since the loans are smaller amounts (up to $575), there are no minimums required for lending.

SoLo Funds has a marketplace of loan requests from borrowers, with details specified on each. Each loan request shows the amount needed plus the tip given by the borrower for the loan. Each borrower also has a SoLo Score, on a scale from 40 to 99, with higher scores showing more “worthiness” for paying back a loan. Loans can go into default, and if needed, to collections through a third party. There is a risk of total loss with SoLo Funds investing, though the platform does offer insurance against loss for a fee.

Learn more about SoLo Funds.

FundingCircle: Best for small businesses

Best Peer-To-Peer Lending Sites For Borrowers And Investors REWRITE - FundingCircle

APR: 11.29% to 30.12%
Term: 6 months to 7 years

FundingCircle is a small business peer-to-peer platform. The company was founded with the goal of helping small business owners reach their dreams by providing them the funds necessary to grow.

So far, they’ve helped 130,000 small businesses across the world through investment funds by 71,000 investors across the globe. FundingCircle is different in that it focuses on more substantial dollar amounts for companies that are ready for massive growth. They also have an excellent TrustPilot rating.

Borrowing with FundingCircle

As a borrower, the minimum loan is $25,000 and can go all the way up to $500,000. Rates come as low as 5.99%, and terms can be anywhere from six months to seven years. There are no prepayment penalties, and you can use the funds however you deem necessary — as long as they are for your business.

You will pay an origination fee, but unlike other small business loans, funding is much quicker (you can be fully funded as quickly as 1 business day).

Investing with FundingCircle

As an investor, you’ll need to shell out a minimum of $25,000. If that didn’t knock you out of the race, then read on.

According to FundingCircle, you’ll “Invest in American small businesses (not start-ups) that have established operating history, cash flow, and a strategic plan for growth.” While the risk is still there, you’re funding established businesses looking for extra growth.

You can manage your investments and pick individual loans or set up an automated strategy, similar to Betterment, where you’ll set your investment criteria and get a portfolio designed for you.

Learn more about FundingCircle.

Kiva: Best for first-time borrowers

Best Peer-To-Peer Lending Sites For Borrowers And Investors REWRITE - Kiva

APR: 0%
Term: Up to 3 years

If you want to do some good in the world, you’ll find an entirely different experience in P2P with Kiva. Kiva is a San Francisco-based non-profit that helps people across the world fund their businesses at no interest. They were founded in 2005 with a “mission to connect people through lending to alleviate poverty.”

Borrowing with Kiva

If you’d like to borrow money to grow your business, you can get up to $15,000 with no interest. That’s right, no interest. After making an application and getting pre-qualified, you’ll have the option to invite friends and family to lend to you.

During that same time, you can take your loan public by making your loan visible to over 1.6 million people across the world. Like Kickstarter, you’ll tell a story about yourself and your business, and why you need the money. People can then contribute to your cause until your loan is 100% funded. After that, you can use the funds for business purposes and work on repaying your loan with terms up to three years.

Investing with Kiva

As a lender, you can choose to lend money to people in a variety of categories, including loans for single parents, people in conflict zones, or businesses that focus on food or health. Kiva has various filters set up so you can narrow down exactly the type of person and business you want to lend your money to. You can lend as little as $25, and remember, you won’t get anything but satisfaction in return — there’s no interest.

You can pick from a variety of loans and add them to your “basket,” then check out with one simple process. You’ll then receive payments over time, based on the repayment schedule chosen by the borrower and their ability to repay. The money will go right back into your Kiva account so you can use it again or withdraw it. There are risks to lending, of course, but Kiva claims to have a 96% repayment rate for their loans. Just remember, you’re not doing this as an investment, you’re doing it to help out another person.

Learn more about Kiva.

What is peer-to-peer lending?

As the name suggests, peer-to-peer lending involves private individuals making loans to other individuals. The system runs contrary to the traditional model of banks and credit unions providing financial services because it cuts out the middleman.

While peer-to-peer lending had a surge in users over the past decade, in the past few years, some P2P lending companies have shuttered their services, including StreetShares, Peerform, and LendingClub.

How does peer-to-peer lending work?

Peer-to-peer lending shares many similarities with traditional lending:

You fill out an application with your financial and personal information, including the loan’s size, tax returns, and government-issued identification.
The lender will review your application before posting it on the site for investors.
Investors get to play the part of a loan officer, reviewing a list of applications and deciding where they might want to contribute.
The platform will indicate how risky the loan is and the potential return on investment.
Funding takes anywhere from one day up to two weeks.

Is peer-to-peer lending safe?

No one would say that peer-to-peer lending is 100% safe. No form of investing is. Many of the best peer-to-peer lending sites vet borrowers and investors to mitigate risk. The review process helps eliminate untrustworthy candidates, so borrowers can receive their loan and investors can earn interest.

Read more: Should you invest in peer-to-peer loans?

Pros & cons of P2P lending for investors

Pros

An attractive alternative to more traditional investments — You can round out your portfolio that might exclusively include stocks, bonds, and mutual funds. Some platforms merge private and public equities, so you can make all your investments in one place.
Most lending platforms let you select multiple loans at once — The variation enables you to reduce your risk exposure while potentially earning higher yields than a CD or savings account.
Feel good about your contribution — With sites like Kiva, you know that your money is going toward a humanitarian purpose.

Cons

Risk of default — When you lend money to individuals, you risk them defaulting. Peer-to-peer lending sites don’t come with FDIC insurance like a CD or savings account.
P2P loans lack the liquidity of stocks or bonds — Most loans are for three to five years, so you would have to wait until then to withdraw money.
Inequality — Some platforms, such as Funding Circle, only give access to accredited investors, so not everyone has equal access to lending opportunities.

Pros & cons of P2P lending for borrowers

Pros

You can circumvent the traditional bureaucracy of brick-and-mortar banks — Instead of waiting in line and negotiating with a loan officer, you have access to a fast, online experience. Because online platforms don’t have to worry about physical overhead, many can give borrowers competitive interest rates.
P2P loans typically aren’t as strict as banks or credit unions — The lax approach makes it easier to secure a loan if you have fair or poor credit history.
Often no prepayment penalties — You don’t have to worry about prepayment penalties in many cases.

Cons

Borrowers face more hurdles if they have a low credit score — Interest rates can go as high as 36% for those with lower scores, while some platforms don’t offer financial services to anyone with a credit score below 630.
Possibly high fees — Some sites have origination fees of 6%.
Impersonal — If you want the old-fashioned face-to-face borrowing experience, peer-to-peer lending isn’t for you. You don’t have a chance to sit down with your lender and hash out terms.
Loan caps around $50,000 — If you need more money, you’ll likely have to go to a bank or credit union.

Summary

Peer-to-peer lending is a great option for borrowers with less-than-stellar credit who want access to capital with reasonable terms and rates. P2P lending is ideal for small businesses and individuals who are looking for a personal loan that does not require mountains of paperwork, and that is funded quickly (usually within a few days).

But not all P2P lending platforms operate the same, and some can charge high origination fees and interest rates. Others require high minimum loan amounts to borrow as well, making them less accessible to some borrowers.

Investors can earn decent returns with P2P lending, but there is also the risk of default and the mess of going through collections agencies occasionally. Finding a solid platform with detailed risk mitigation strategies (such as borrower scores), and insurance against default can help alleviate these concerns, but it may eat into your profits.

While peer-to-peer lending is not seeing the massive growth of a few years ago, it is still a solid option for borrowers and investors alike.

Source: moneyunder30.com

Apache is functioning normally

June 7, 2023 by Brett Tams

Boston fintech firm Knox Financial plans to expand its lending business and loan products with $50 million in funding it received from a real estate advisory firm.

New York-headquartered Saluda Grade provided the funding in forward flow capital which Knox will use to expand its lending business into Georgia, Knox representatives said Wednesday. The fintech also will offer additional loan products, including home equity lines of credit (HELOCs), new purchase loans and cash-out refinancings.

“A homeowner’s best investment is the home they live in — far better than the returns we’ve seen from the stock market in 2022, and a great hedge against record-high inflation,” said David Friedman, co-founder and CEO of Knox Financial.

Established in 2018, Knox aims to help manage residential rentals with its algorithm-based platform. Its rental pricing and projection model also calculates the rate of return an investment property is expected to produce over time. When a property is enrolled in the platform, Knox automates and oversees the property’s finances and taxes, insurance, leasing, banking and bill pay, according to the company’s website.

The funding comes shortly after Knox launched its first mortgage product, dubbed the Knox equity access program (KEAP), in April. KEAP loans give homeowners access to capital, based on the equity in the home, to turn it into an investment property with Knox. Homeowners can then use their KEAP loan to fund a downpayment on their next home and to pay for repairs on their investment property.

In return, Knox charges an origination fee and third-party costs to the borrower. Knox also keeps 10% of the rental income generated from properties listed on its platform.

Prioritizing home equity solutions in a rising rate environment

The 2022 housing market has been underscored by interest rate spikes and refi decline and lenders are working hard to adjust to new borrower trends. HousingWire recently spoke with Barry Coffin, managing director of home equity title/close at ServiceLink, about the ways lenders can capitalize on these trends by revving up their home equity solutions.

Presented by: ServiceLink

Knox’s expansion comes amid a shrinking mortgage origination market. As mortgage rates began increasing this year, lenders, mortgage tech firms and real estate brokerages started laying off employees, often citing rapidly declining market conditions.

With rising mortgage rates, company representatives said Knox has seen growing interest in second lien products such as home equity loans or HELOCs from borrowers who have tappable equity but don’t want to refinance.

“As mortgage rates have risen, more inventory will become available at more competitive pricing,” said Matt Marra, chief growth officer at Knox.

Knox Financial raised $10 million in Series A funding in April 2021, led by G20 Ventures, following a $3 million seed round in January 2020. The largest markets for Knox are metropolitan areas of Boston, Atlanta, Houston, Dallas and Austin, Texas. According to Marra, Knox oversees a portfolio of $150 million in combined value.

Source: housingwire.com

Apache is functioning normally

June 7, 2023 by Brett Tams

Most mortgage lenders offer both home purchase loans and refinances. But Direct Access Funding is all about the refis.

In fact, the Southern California based lender refers to itself as a the “refinance division” of its parent company.

Seeing that most refinances are driven by the desire to obtain a lower mortgage rate, there’s a good chance their pricing is competitive.

They say they’ve got the best refinancing rates period and quality customer service to boot, which their reviews seem to back up.

So if you’re an existing homeowner looking for a better mortgage, they could be worth looking into. Let’s dig into the details.

Direct Access Funding Fast Facts

A direct-to-consumer mortgage lender that offers home refinance loans
Founded in 1998, headquartered in Irvine, California
The refinance division of Absolute Home Mortgage Corporation
Licensed to do business in 15 states and the District of Columbia
Their parent company funded $2 billion in home loans last year
Claim to offer the best mortgage refinance rates

As the name implies, Direct Access Funding is a direct-to-consumer mortgage lender based in Irvine, California, which is in the heart of Orange County.

Instead of a physical branch network, they work remotely with customers from a central call center to help you process and close your loan.

The company is located near many other mortgage lenders, including CashCall Mortgage, ClearPath Lending, loanDepot, and Watermark Home Loans.

As noted, they dabble only in mortgage refinancing, meaning their target market is existing homeowners as opposed to home buyers.

They are actually a division of Absolute Home Mortgage Corporation based out of Fairfield, New Jersey, which originated about $2 billion in home loans last year.

They’re currently licensed to do business in 15 states and the District of Columbia.

Those states include Arizona, California Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, and Virginia.

How to Apply with Direct Access Funding

To get started, you can call them on the phone or simply visit their website and begin on your own.

Your best move might be to get in touch with a licensed loan officer first to discuss mortgage rates, lender fees, and overall eligibility.

Once you get the information you need to proceed, you can fill out their digital mortgage application online.

It allows you to complete the form 1003 electronically, eSign disclosures, and upload supporting documents via a secure portal.

Once your loan is submitted, you’ll be able to manage your loan online from start to finish.

It’s unclear if the processing and underwriting of your loan is completed in-house or at their parent company’s headquarters.

Regardless, their goal is to make refinancing stress-free and they employ the latest technology and solutions to make that happen.

Because they focus on existing homeowners only, the process should be faster than traditional banks and lenders.

Loan Programs Offered by Direct Access Funding

Rate and term refinances
Cash out refinances
Streamline refinances
No cost refinances
Conforming loans backed by Fannie Mae and Freddie Mac
FHA loans
Fixed-rate mortgages in various loan terms

Direct Access Funding seems to be solely focused on mortgage refinances for existing homeowners.

This includes rate and term refinances, cash out refinances, and streamline refinances.

They can also structure your loan as a no cost refinance through the use of lender credits so nothing needs to be paid out of pocket.

In terms of loan types, I believe they only originate conforming loans backed by Fannie Mae and Freddie Mac, along with FHA loans.

It’s unclear if they offer VA loans or jumbo loans as well.

You can get a fixed-rate mortgage such as a 30-year fixed or a 15-year fixed, and possibly an adjustable-rate mortgage too.

They lend on primary residences, second homes, and investment properties, including condos/townhomes.

All in all, their product menu isn’t vast but should cover most of the population.

Direct Access Funding Mortgage Rates

While they claim to have the “best” mortgage rates for a refinance loan, they don’t list their rates online. At least not on their website.

However, you might find them on third-party websites alongside other lenders in mortgage rate tables.

My assumption is their rates are very competitive since they’re a branchless, refinance-only lender.

And because refis are generally pursued to save money, they will need to beat your existing rate to earn your business.

But do take the time to compare their quote to other lenders to be sure. And also ask about any lender fees, such as a loan origination fee or application fee.

I’d classify them as a low-cost mortgage lender because of their lightweight business model (lack of branches and advertising), which is a good thing if you’re looking for lowest possible rate/fee.

Direct Access Funding Reviews

On Experience.com, Direct Access Funding has an impressive 4.91-star rating out of a possible 5 from over 1,000 customer reviews.

You are able to filter the reviews by loan officer to see how certain individuals have performed in the past. If a certain person stands out, be sure to ask for them when calling in.

Over at Google, they have an even better 4.9-star rating from nearly 200 reviews, which is pretty close to perfection.

Lastly, they’ve got a 4.9 rating on Bankrate from 15 reviews, with 100% of reviewers indicating they’d recommend the company to others.

Their parent company Absolute Home Mortgage Corp. is an accredited company with the Better Business Bureau (since 2013) and currently holds an ‘A+’ rating based on complaint history.

All of these reviews give them some legitimacy, even if they’re not a household name like some of the larger lenders out there.

In closing, Direct Access Funding seems to be a streamlined refinance shop that could be a good fit for an existing homeowner looking for a lower mortgage rate or cash out.

They’re probably best suited for those with plain vanilla loan scenarios (e.g. W-2 employee, conforming loan amount, single-family residence).

If that’s you, they might be able to beat your existing mortgage rate and save you money each month.

But those with more complex loan scenarios (self-employed borrowers, investors, jumbos) may want to look elsewhere.

Direct Access Funding Pros and Cons

The Pros

Can apply for a home loan online in minutes without a human
Offer a digital mortgage application (paperless process)
Say they offer the best refinance rates
Excellent reviews from past customers
Parent company is accredited, A+ BBB rating

The Cons

Not licensed in all states
No branch locations
Only offer refinancing products (not home purchase loans)
No mention of lender fees

Source: thetruthaboutmortgage.com

Apache is functioning normally

June 7, 2023 by Brett Tams

Mortgage lending is largely about the numbers. The process of originating a mortgage is logical, mathematical and should, therefore, be predictable.

From a homeseeker perspective, the process of searching for and purchasing a home is both logical and emotional. The logical side of the process often means a long list of requirements like square footage, number of bedrooms and baths, school quality, proximity to work and shopping, etc.

But for those searching for a home, there is a fair deal of emotion that factors into their decision to make an offer. Who hasn’t fallen in love with a property and conjured up visions of what life could be in a new home? This is likely one of the reasons real estate agents are known to say, “Marry the home, date the rate.”

Once the homeseeker has found that dream home, it’s now time for them to figure out how they are going to pay for it. And while you might think that this is when the homeseeker flips the switch from emotion to logic, our recent research suggests that there is a strong emotional component to the financing of a home. Keep in mind that, for most, going through the mortgage application is something that happens a small handful of times in their lives.

Earlier this year, CreditXpert fielded a national survey of those that had recently purchased a home, refinanced a mortgage or anticipated being in the market for a home in 2023. Through this survey we wanted to better understand how consumers think about their credit, the process of applying for a mortgage and what they thought about CreditXpert’s predictive analytics tool that gives them the precise steps they need to take to reach a target credit score.

After showing the participants the tool, we asked them to share the top three reasons they would use CreditXpert to improve their credit score. The number one reason (“will help me save money over the life of the loan”) was clearly logical and not much of a surprise to our team. But subsequent reasons caught us by surprise and clearly pointed to the emotional side of the mortgage application process.

The pink bars in the chart below clearly spell it out. Homeseekers cited more confidence that they were getting the best interest rate (28%), felt empowered to work with their lender (25%), took the mystery (fear) out of the process (21%), gave them more confidence (there’s the confidence word again!) they could qualify (20%) and took some of the stress out of the process (18%).

The mortgage application process is stressful, meet your borrowers where they are

All borrowers start out hopeful and get excited when they see a home that’s nearly perfect. As the deal gets closer to the closing table, applicant anxiety begins to enter the red zone. There are always one or two reasons for the applicant to panic before it’s all signed and then, when it’s all over, they swiftly go from elation to exhaustion, as they realize how much this process took out of them.

For the loan originator, the mortgage is a transaction. For the borrower, the mortgage makes a life-changing event possible.

Not to put too fine a point on it, the chart makes clear that for the mortgage borrower the housing/mortgage transaction is much more emotional than logical.

Building empathy to build applicant trust

The perfect example of by-the-numbers mortgage lending is the refinance transaction. If it makes sense, it’s clearly visible in the numbers for everyone to see. There is little emotion for the homeowners either, as they are only in the deal to get a better rate and term.

A purchase mortgage transaction is different.

New homebuyers are strapped into an emotional roller coaster and once they make the offer, they are in a desperate rush to the closing table.

Demonstrating empathy and understanding towards your borrowers is crucial for building trust. When people feel genuinely heard, understood and cared for, trust builds.

The simple act of helping your borrowers improve their credit score helps build that trust by empowering them, building their confidence, taking the mystery out of the transaction and overall reducing their stress. In a highly competitive market, that’s a recipe for closing more loans.

For those that need help qualifying for a mortgage, improving their score can be lifechanging. For those that are well qualified, improving their score could help you make a more competitive offer and lower their cost of homeownership. And for those where an improved score would not result in a better outcome, the simple act of showing them that you are shaking the trees and working hard for them will increase transparency, build trust and help you close more loans.

To learn more about CreditXpert, click here.

Source: housingwire.com

Apache is functioning normally

June 7, 2023 by Brett Tams

California-based Pennymac launched a product that can freeze mortgage rates as many as 90 days, in a bid to attract more borrowers to the market amid volatile rates.

Dubbed “Lock & Shop,” the product, rolled out in mid-June, has three terms, all of which include a shopping period, plus a built-in, 30-day period in which to close on the contract. The terms vary based on how much time a borrower anticipates needing to find their dream home: The 60-day lock gives borrowers 30 days to find their new home; the 75-day lock gives borrowers 45 days to shop; and the 90-day lock gives customers 60 days to select a home.

The product also allows a one-time “float down,” should rates decline. It’s available for all loan types, except for jumbo.

“As we know, the Federal Reserve has indicated they’re going to continue to raise rates, so we can lock in the loan with today’s rate for up to 90 days,” said Scott Bridges, senior managing director of direct consumer lending. “That might prevent you from either not buying the house you wanted or having to buy a lower-priced house because your payment would be higher with a higher rate.”

Pennymac’s product allows borrowers to extend their lock-in period at an updated rate if they do not find a house during the term length selected. Bridges said there’s no upfront fee, but the lender requires pre-approval to ensure borrowers qualify for a mortgage loan – in this case, the lender gives 50 basis points on the closing costs.

“There’s no point doing a Lock & Shop if your purchase is going to be fairly imminent, but we are seeing it to be a very popular product for our borrowers,” Bridges said. Pennymac has locked more than 100 applications with the product since mid-June.

Creating a path to success in today’s purchase market

Meeting the needs of a new generation of homebuyers while managing the ebbs and flows of a volatile housing market is a major endeavor for any mortgage lender. So, what should lenders be doing to thrive in the face of a post-pandemic housing market rife with new hurdles?

Presented by: Calyx

Pennymac is the latest mortgage lender to freeze rates for borrowers. In late June, fintech startup Tomo also announced a “Lock & Shop” product, allowing borrowers to lock in a mortgage rate for as many as 120 days, about twice as long as most lenders.

The product does not require a property address to guarantee a mortgage rate. Founded in 2020 by former Zillow executives Greg Schwartz and Carey Armstrong, the fintech startup focuses on the $1.6 trillion purchase mortgage sector.

“Consumers had seen so much news coverage on a threatened recession, inflation and interest rate increases that they got stuck,” Tomo’s co-founder and CEO Greg Schwartz said. “They are saying: ‘I’m afraid that if I start shopping now, by the time I find a place — because there’s still limited inventory, I still have to make multiple offers — and, by the time I find a home, I may have much less buying power.’”

Since January, mortgage rates have risen quickly due to high inflation and the Federal Reserve’s plan to tighten monetary policy. And that has put pressure on mortgage lenders with extended lock-in periods.

When rates are surging, lenders’ capital markets teams have trouble selling loans locked at a lower rate because investors demand higher returns. That often forces lenders to sell at par or take a loss.

But Pennymac and Tomo said they can offer extended lock-in periods because their capital markets teams are hedging the transactions (so they can avoid losses when selling loans at the current mortgage rate in the secondary market in the future) and the companies have strong balance sheets.

Last summer, Tomo launched its platform after raising $70 million in seed capital and achieving “unicorn” status. In 2022, Tomo said it raised another $40 million in a Series A round led by SVB Capital, which more than doubled the company’s valuation to $640 million.

Tomo, however, is not immune to the volatility in the markets. The digital mortgage lender laid off nearly one-third of its workforce in late May. The company does not disclose its origination volume.

Pennymac reported $490 million in cash as of March 31, according to Securities and Exchange Commission (SEC) filings.

The company delivered a pretax net income of $234.5 million in the first quarter, essentially unchanged from the prior quarter. Pennymac expects to lay off 207 employees in June and July following a workforce reduction filing of more than 230 employees in March.

Editor’s Note: This article was updated July 14 to indicate Pennymac offers three term options for its “Lock & Shop” product. After publication, a spokeswoman provided additional information about a 60-day lock term, which had not been initially disclosed.

Source: housingwire.com

Apache is functioning normally

June 7, 2023 by Brett Tams

Today we’ll explore one of the nation’s largest loan servicers that happens to be a major mortgage lender as well, “Lakeview Loan Servicing.”

As their name implies, they service mortgage loans, meaning they collect monthly payments from customers after the loan funds.

These days, a lot of mortgage lenders don’t do that, and instead focus on making new loans and selling them off quickly so they can fund even more.

But Lakeview has adopted a strategy some of the largest mortgage lenders in the country have, doing both.

This means aside from servicing loans, they also originate billions in mortgages annually. Let’s see if they could be a good fit for a new mortgage.

Lakeview Loan Servicing Fast Facts

Direct-to-consumer mortgage lender that offers home purchase and refinance loans
Founded in 2010, headquartered in Coral Gables, Florida
Funded $41 billion in home loans last year (a top-25 mortgage lender nationally)
The 4th largest loan servicer in the country
Licensed to lend in 48 states and the District of Columbia
Also operates a wholesale and correspondent lending business

As noted, Lakeview Loan Servicing operates as both a loan servicer and a direct-to-consumer mortgage lender. This is similar to a NewRez or a Rocket Mortgage.

They are currently the nation’s fourth largest loan servicer in the country, and help more than 1.4 million customers manage their home loans annually.

The company also recently became the largest servicer of Ginnie Mae mortgages, aka FHA loans and VA loans.

To clarify, they own the servicing rights to all these mortgages, and actually partner with subservicers like LoanCare to process payments, manage escrow, etc.

At the same time, they mustered an impressive $40.7 billion in home loan origination last year, landing them in the top-25 lender list.

They did a near-equal amount of home purchase loans and mortgage refinances, so they could be a worthwhile choice for both a new home buyer or an existing homeowner.

My guess is they tap into their massive loan servicing portfolio to find new refinance candidates. So if they service your loan, they may have reached out.

As I always say, when a lender reaches out, reach out to other lenders! That way you can comparison shop.

At the moment, they are licensed in 48 states and D.C., with Hawaii and New York the exceptions.

How to Apply for a Mortgage with Lakeview Loan Servicing

If you’re a current loan servicing customer, you may have received solicitations from Lakeview Loan Servicing to refinance your loan.

But they’re also a big originator of home purchase loans, so home buyers with no prior relationship could also choose them as their lender.

They say they’ve got more than 100 loan officers in four locations across the country to serve home buyers and refinancers.

And both loan processing and underwriting are done in-house to ensure fast turn times. Those who need to get pre-approved for a mortgage can do so in as little as 24 hours.

To get started, you can visit their website or call them directly. If you go online, you can create an account and submit a new mortgage request.

At that point, a licensed loan officer will get in touch to discuss loan pricing and eligibility.

They offer a digital mortgage application powered by ICE Mortgage Technology that allows you to complete most tasks electronically.

And once your loan is submitted, you’ll be able to manage it and check status via the online borrower portal.

Once the loan funds, it’ll be serviced by them as well via one of their subservicing partners.

Lakeview Home Rewards

One perk to using them for a home purchase loan is the “Lakeview Home Rewards” program.

In short, it’s a real estate agent referral program and mortgage lender all rolled into one.

Once you sign up, you’ll be matched with a top local real estate agent and a dedicated mortgage loan officer from Lakeview.

After your loan funds, you’ll receive up to $6,500 cash back, depending on the home’s purchase price.

Those who sell and buy a home using the service can receive up to $13,000 in rebates once both transactions close.

Note that these rewards aren’t offered in some states (AK, IA, LA, and MO) and are limited in others.

They say they only work with “premier brokerages across the United States,” and pick the top real estate agents from those companies.

This includes real estate agents with at least five years of experience who maintain a 90%+ satisfaction rating.

If you aren’t already working with an agent, this program could be a money-saver and provide the convenience of an end-to-end home buying process.

Loan Programs Offered by Lakeview Loan Servicing

Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Home equity loans

Lakeview Loan Servicing offers home purchase loans and mortgage refinance loans, meaning they serve both existing homeowners and prospective home buyers.

If you already own a home, you can refinance to obtain a lower mortgage rate and/or get cash out. Streamline options are offered as well.

All the major loan types are available, including conforming loans backed by Fannie Mae and Freddie Mac, and government-backed loans like FHA, VA, and USDA loans.

It’s also possible to get a jumbo home loan, and even a second mortgage in the way of a home equity loan.

They seem to offer mostly fixed-rate mortgages, including the 30-year fixed, 15-year fixed, and other less common loan terms.

I’m not sure if they also originate adjustable-rate mortgages, which aren’t very popular at the moment.

But they should have enough options to suit most home buyers and homeowners out there.

Lakeview Loan Servicing Rates

They say they offer low interest rates, but that’s about it. You won’t find their daily mortgage rates listed online to compare to other lenders.

As such, you’ll need to call them up and get in touch with a loan officer to obtain the latest pricing.

Be sure to inquire about lender fees when you do that to get the full picture. It’s unclear if they charge a loan origination fee or other fees for processing, underwriting, and so on.

My guess is they’re a middle-of-the-road lender in terms of pricing, though that’s just an assumption.

At the end of the day, they might be priced lower than the big banks and national brands, but perhaps higher than the low-cost mortgage lenders out there.

But you won’t know until you call and speak to a human.

Lakeview Loan Servicing Reviews

On Zillow, they have a 4.84-star rating out of 5 from about 400 reviews. A decent number of recent reviews indicated the interest rate was lower than expected.

Their Zillow rating might be the best representation of their home lending division, while other reviews you come across could be more related to their servicing business.

For example, over at Google it’s more of a mixed bag, with a much lower 2.5-star rating from over 600 reviews. The caveat is this may include both lender customers and servicing customers.

This is one of the problems with operating as both types of companies under the same brand. Take the time to read the reviews to see if they relate to new loans or existing, serviced loans.

While they aren’t accredited with the Better Business Bureau (BBB), they do have an ‘A+’ rating based on complaint history.

In summary, Lakeview Loan Servicing could be a good choice for a home purchase loan due to their rebate program, and potentially good for refinancers if the rates are low.

The only question marks are pricing and customer service, the latter of which might be muddled because they are also a loan servicer.

Lakeview Loan Servicing Pros and Cons

The Pros

Can apply for a home loan online in minutes
Digital mortgage application powered by ICE Mortgage Technology
Lots of home loan programs to choose from including second mortgages
Lakeview Home Rewards offers up to $6,500 cash back
A+ BBB rating
They’ll service your loan after closing
Free mortgage calculator and mortgage glossary online

The Cons

Not licensed in Hawaii or New York
No physical branches
Do not publicize mortgage rates or lender fees
Lots of mixed reviews (which may be due to servicing)

Source: thetruthaboutmortgage.com

Apache is functioning normally

June 7, 2023 by Brett Tams

Conditions for first-time home buyers looked different in the first quarter of 2023 compared with one year before, but they hadn’t necessarily improved.

Across the country, while active listings in the first quarter fell from the previous quarter, they remained significantly higher than a year ago, and asking prices held relatively steady. However, homes were listed at 5.5 times the typical income of a first-time buyer — still above what’s deemed affordable according to an long-standing rule of thumb that suggests shopping for homes listed at three times your income. And a few new challenges have further complicated things: Higher mortgage rates and tightened lending standards mean getting a favorable mortgage (or getting a mortgage at all) has become more difficult.

This quarterly analysis has examined home affordability for first-time buyers across the nation and in the most populous metro areas for the past three years. At any given time, these ambitious shoppers face unique constraints, including less robust credit histories and generally lower incomes than repeat buyers. For new prospective homeowners, understanding the challenges they might face can help inform a successful buying strategy.

Affordability remains steady

Overall affordability changed little in the first quarter of the year for first-time home buyers. Across the nation as a whole, homes were listed at 5.5 times first-time buyer income. In the nation’s 50 largest metros, they were priced 5.6 times typical first-time buyer income — up from 5.5 in the fourth quarter of last year.

Metro areas in California have historically been the least affordable in the nation. This most recent quarter had some familiar faces among the costliest: Los Angeles, where homes were listed at 11.1 times the typical first-time buyer income, San Diego (9.6) and San Jose (8.7). These were joined by Miami (8.6) and New York City (7.3). This is the first time in this analysis that the NYC metro area was among the five least affordable locations.

As for where first-time buyer money can go the furthest, just two metros had homes listed at less than three times the typical first-time buyer income. This is the second quarter in a row that Pittsburgh (where homes were listed at 2.5 times first-time buyer income) and Cleveland (2.9) had the “affordable” designation. Other close contenders included Detroit (3.2), Buffalo, New York (3.3), and St. Louis and Baltimore, both at 3.6.

Click here to see a table with affordability metrics for all locations analyzed.

First-time buyer guidance: It may be possible to find homes listed at three times your income in rural areas, small towns and a few large metros. Elsewhere, it seems quaint. Barring the ability to relocate and buy in a low-cost market, you may be shopping for homes listed for far more. An online home affordability calculator can help you set a realistic initial price range given your personal circumstances as you begin shopping. Minimizing other debt and expenses is one way to allow housing costs to comfortably take up more of your monthly budget.

Prices stall in first quarter

Prices didn’t move much in the first quarter, after adjusting for inflation. Inflation-adjusted list prices give buyers a sense of how far their money will go when they begin shopping for a home, compared with how far it would have gone in previous periods.

Across the nation’s biggest metro areas, prices stalled compared to the previous quarter, and rose very slightly (+1%) when compared with the same period last year.

The biggest quarterly price increases were seen in midwestern areas, including a 10% increase in list prices in Kansas City, and 7% increases in Cincinnati and Columbus, Ohio and Minneapolis. Just two metro areas saw prices come down more than 5% when compared with the previous quarter: Pittsburgh and Detroit, which both saw 6% decreases.

First-time buyer guidance: The list price, also known as the asking price, may not be the price you pay for a home. In 2021 and into 2022, competition meant that sellers were receiving offers well above asking price. That competition has cooled and, in some markets, an offer at or even below list price could now be accepted. The best way to know for certain what type of competition you’ll face is to talk to a few real estate agents in the area where you hope to buy. Because conditions can vary from city to city, and even from one neighborhood to the next, chatting with someone who has local expertise will give you the best idea of what to expect.

Borrowing gets more difficult in Q1 and beyond

Few first-time buyers can purchase a home outright, with cash. Most take out a mortgage. And in the most recent quarter, that got a little more difficult. Not only are buyers still trying to adjust to consistently higher interest rates, some banks reported tightening lending standards during the first quarter.

Citing the “uncertain economic outlook” and reduced risk tolerance, among other reasons, lenders across bank sizes made it more difficult to obtain residential real estate loans, according to the Senior Loan Officer Opinion Survey from the Federal Reserve. They expect the trend to continue throughout the year.

First-time buyers, who may be more likely to have less robust credit histories, could feel the brunt of this tightening.

First-time buyer guidance: Whether your goal is to qualify for the lowest mortgage rate possible or simply qualify for a mortgage, your credit score is a good place to start. Keep your score high by making payments on time, every time. Also, if possible, avoid opening new accounts in the months leading up to your house hunting — it will drag down your average account age, another important factor in your credit score. In addition to your score, lenders will look closely at your debt-to-income ratio, so paying down debt before you shop for a home loan can make your application even more attractive.

Inventory dips, but still a major improvement over 2022

Inventory is often lower in the first quarter of the year — the weather is cold and we haven’t hit the seasonal swing into homebuying season. This year, the number of active listings fell 26% in Q1 in the largest metro areas. This seasonal dip was likely exacerbated by higher mortgage rates — would-be sellers may be less likely to trade their old rate for a new one, knowing rates will remain elevated well above where they were during the buying frenzy of 2021.

That said, the number of active listings is a significant improvement over what was available last year at the same time.

Click here for a table displaying quarterly and yearly changes in available homes, by metro area.

First-time buyer guidance: The number of homes available for sale directly impacts how likely it is you’ll find a home that checks all of your boxes. And in a sparse market, if the “perfect” home is listed, there’s a good chance you’re not the only interested buyer. Before you begin shopping, prioritize the items on your wishlist according to what you cannot live without and what you may be willing to compromise on. There’s little doubt you’ll need to make some compromises; going into the process with this in mind can save you some disappointment.

METHODOLOGY

Monthly median list price and list count figures are from monthly inventory data from the Realtor.com residential listings database as of May 2, 2023. All nominal list prices were adjusted to March 2023 dollars using the U.S. Bureau of Labor Statistics’ Consumer Price Index. All monthly median figures were compiled into quarterly averages.

Changes to the Realtor.com inventory data methodology occurred with the release of the website’s February 2023 data. These changes make the current data not directly comparable with previous data releases. This means NerdWallet’s analysis of first-quarter data cannot be directly compared with our analyses of previous quarters’ data.

The median age of first-time home buyers is 36, according to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers. Estimated income for first-time home buyers was derived from the U.S. Census Bureau’s 2021 American Community Survey metro-level median household income for householders ages 25-44 — the range likely to include most first-time home buyers — and adjusted to March 2023 dollars using the Bureau of Labor Statistics’ Employment Cost Index.

Interpret metro rankings with caution. Due to margins of error in income data and rounding, there may be overlap in affordability ratios.

San Juan, Puerto Rico, is among the 50 most populous metros but was excluded from the analysis due to insufficient inventory data.

Source: nerdwallet.com

Apache is functioning normally

June 6, 2023 by Brett Tams

If you live or work in Delaware, it’s important to find the right bank for your unique goals. Fortunately, there are plenty of options at your disposal.

In addition to its beautiful beaches, affordable housing, and historical landmarks, the First State is home to many reputable banks that are member FDIC for your peace of mind and ideal for your personal or business finances.

13 Best Banks in Delaware

While some have local branches throughout the state, others are online only. To make your search for the ideal financial institution a bit easier, we’ve done the heavy lifting for you and listed the best banks in Delaware below.

1. The Bank of Delmarva

The Bank of Delmarva is a small community bank with branches in Ocean City, Salisbury, and Sussex County. Its lineup of personal banking accounts and services includes the best checking accounts, savings accounts, money market accounts, CDs, and IRAs.

If you’re a small business owner, rest assured that it offers business loans, commercial products, and merchant services. Compared to other banks in the state, it offers low fees and competitive interest rates. Plus, it’s earned stellar reviews for its customer service. We can’t forget the intuitive mobile app you can use to manage your banking while you’re out and about.

2. Chime

Chime is a digital bank redefining traditional banking norms. With no physical branches, Chime stands out by providing a simple yet intuitive suite of financial products, all managed from their highly rated mobile app. The bank offers a fee-free¹ checking account, a savings account, and a secured credit card.

The checking account, with no minimum balance and no overdraft fees, is particularly impressive. Its standout feature, SpotMe⁵, allows qualifying users to overdraw by up to $200 without fees. Meanwhile, the savings account is made appealing with an automatic savings feature, making it simple to save without thinking.

Notably, Chime gives the benefit of receiving paychecks up to two days early² with direct deposit setup, a major plus for budgeting and financial planning. Its secured credit card is also a boon, helping users build credit over time through responsible usage and consistent payments.

3. TD Bank

TD Bank is a solid pick for a national bank with a handful of locations in the First State. With TD Bank, you can expect a plethora of products and services, no fees on international transactions, and a highly rated mobile banking app.

From personal and business checking accounts and savings accounts to personal loans, IRAs, and mortgages, TD Bank truly offers it all. If you open an account, you might qualify for a generous bonus. Also, if you’re a student or young adult, you won’t have to worry about monthly maintenance fees or service fees. You might also be able to waive these fees if you maintain a high balance in your accounts.

4. M&T Bank

M&T Bank has many locations in Delaware in cities like Wilmington and New Castle. Even if you don’t live in an area with a physical M&T location, you can enjoy digital banking and conveniences like Zelle transfers and mobile deposits. When it comes to checking accounts, M&T Bank offers four options.

The EZ Choice Checking is your best bet for a basic, free checking account while MyWay Banking is a checkless account that doesn’t charge overdraft fees. MyChoice Plus is an interest-bearing account, just like MyChoice Premium, which offers competitive rates on loans and other products.

In addition to these noteworthy checking accounts, you’re sure to appreciate M&T’s large ATM network and no monthly fees.

5. Artisans’ Bank

Artisans’ Bank has served Delaware since 1861. Today, it has 12 branch locations in the First State as well as two commercial lending offices. Artisans’ list of personal banking products includes checking accounts, savings accounts, money market accounts, debit cards, and branded credit cards with cash back rewards.

The bank also serves small businesses in Delaware with small business banking products such as business bank accounts, business credit cards, and business loans. Even though Artisans’ is a local bank with a physical presence, it offers online banking services so you can manage your accounts online.

6. Capital One

Capital One is a large bank with a reputation for no minimum deposit requirements or monthly maintenance fees. While there are no Capital One branches in Delaware, the bank is worth considering if you prefer online banking. You can apply for and manage personal and business accounts online.

Speaking of accounts, its flagship account is the 360 Performance Savings that makes it a breeze to earn interest on your hard earned money. In addition to an impressive interest rate, there is no minimum balance required so you can open an account with any amount. Other perks there is a highly rated mobile app and free credit card monitoring.

7. Axos Bank

Axos Bank is a digital bank with competitive interest rates on checking and savings accounts, which are free of monthly fees and ATM fees. Even if you live in Delaware, you can perform your banking through Axos online or via the intuitive mobile app, which comes with mobile check deposits, fund transfers, and mobile bill pay.

The bank’s checking accounts offer rewards while the savings accounts stand out for their ATM cards. Speaking of ATMs, Axos Bank will reimburse you for ATM fees on many of its accounts. In addition to its personal banking products, Axos specializes in new mortgages, mortgage refinancing, HELOCs and home equity loans, car loans, personal loans, and managed investment portfolios.

8. Barclays Bank

Barclays Bank operates in Wilmington. It’s a global bank that serves all U.S. states with several banking products. Even though there is only one branch in Delaware, it offers an online portal and a highly rated mobile app so you can bank from anywhere.

As a customer, you’ll enjoy benefits like a high interest rate on high-yield savings accounts and CDs. If you do open a CD with Barclays, you’ll also reap the benefits of low withdrawal penalties. In addition, the bank’s customer service line is available seven days a week to answer any questions or concerns you might have.

9. Community Bank Delaware

Community Bank Delaware is exactly what it sounds like: a community bank based in Delaware. Since it’s locally owned and managed, it focuses on personalized customer service and community support.

At this bank, you’ll find checking accounts, personal savings accounts, time deposits, personal loans, personal credit cards, mortgages, and home equity loans. Community Bank also serves local small business owners with products to support their business operations, such as checking accounts, business savings accounts, business credit cards, and merchant services.

Additional banking solutions include online banking, wire transfers, cashiers checks, night depositary services, direct deposit, and safe deposit boxes.

10. PNC Bank

PNC Bank is a national bank with over 30 branches in cities such as Dover, Bear, Wilmington, and Newark. Its deposit accounts and other products are designed to meet all your banking needs. Virtual Wallet Spend is a combination checking and a long term savings account with a generous sign-up bonus and features like online bill pay, free mobile banking, and a debit card.

While there is a monthly maintenance fee, you can avoid this monthly fee if you maintain a direct deposit balance. PNC also offers loans, such as mortgages, home equity lines of credit, auto loans, personal loans, student loans, and refinancing products. With the PNC mobile app, you’ll be able to manage your accounts while you’re on the go.

11. Ally Bank

Ally Bank is an online bank with competitive rates on savings accounts, money market accounts, and CDs. Thanks to its low overhead costs, Ally doesn’t charge monthly maintenance fees or impose minimum balance requirements.

You can access your money and make cash transactions at more than 43,000 ATMs through the Allpoint network, which Ally has joined. If you have certain savings goals, you’ll love Ally’s “buckets” feature. With the buckets, you’ll be able to organize your funds and receive personalized recommendations that allow you to save.

12. Wells Fargo

Wells Fargo is one of the largest banks in the U.S. with no shortage of physical branches and ATMs throughout Delaware so you can easily deposit cash. Just like most large banks, Wells Fargo offers a full suite of banking products, such as checking accounts, savings accounts, credit cards, home loans, personal loans, and auto loans.

Investment and retirement accounts as well as wealth management services are available too. You can invest on your own or take advantage of a financial advisor that will help you come with a personalized financial plan. Whether you’re an individual or a small business owner, you’re bound to find what you’re looking for at Wells. If you open an account, you may be eligible for a cash sign on bonus.

13. WSFS Bank

WSFS Bank is a regional bank and a subsidiary of a financial services company called WSFS Financial Corporation. Based in Delaware and Greater Philadelphia, WSFS Bank is known as one of the oldest banks in the country.

It offers a wide range of personal banking services, like checking accounts, savings accounts, credit cards, loans, and wealth management. Its certificates of deposit (CDs) feature competitive interest rates you might not be able to find elsewhere and the WSFS Bank Philadelphia Union Visa® Debit Card comes with contactless pay and access to more than 670 ATMs in Delaware and Philadelphia.

At WSFS Bank, you can also take advantage of business banking services, like SVP management, cash management, and merchant services.

Delaware Banking Options

There are three main types of banks in Delaware, including national banks, community banks, and online banks. Here’s a brief overview of each one.

National Banks

National banks are large banks that can be seen throughout Delaware and other states. These banks typically offer a long list of products for individuals and business owners, such as checking accounts, savings accounts, retirement accounts, credit cards, and mortgages. Some examples include TD Bank, Wells Fargo, and PNC Bank.

Community Banks

Community banks are designed to serve local communities in Delaware. You’ll find that these banks prioritize personal customer service. Community Bank Delaware and the Bank of Delmarva are two community banks in the First State.

Online Banks

Online banks operate online and don’t have physical locations in Delaware. Since their overhead costs are lower than banks with brick-and-mortar branches, online banks usually provide lower fees and higher interest rates. Chime, Axos Bank, Ally, and UK-based Barclays Bank are great online banking options in Delaware.

Bottom Line

Delaware has plenty of banks and other financial institutions to help you meet your financial goals. Before you choose one, consider your priorities and weigh the pros and cons of all your options.

If you like an in-person banking experience, a community bank might make sense. On the flip side, if you prefer online and mobile banking, an online bank is likely the way to go. Good luck with your search for the best bank in Delaware.

Frequently Asked Questions

How do Delaware banks keep my money safe?

Most banks insure your deposits up to 250,000 with the FDIC or Federal Deposit Insurance Corporation. Other services like fraud protection can also give you some peace of mind for your linked accounts.

What are the most popular banks in Delaware?

The banks with the most branches in Delaware include PNC Bank, M&T Bank, and WSFS Bank. If in-person banking is important to you, these banks should definitely be on your radar.

Can I open a bank account in Delaware as a non-resident?

Yes. In most cases, you can open an interest earning account or business savings account even if you don’t live in Delaware. You’ll likely need an Individual Taxpayer Identification Number (ITIN).

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

2. Early access to direct deposit funds depends on the timing of the submission of the payment ﬁle from the payer. Chime generally make these funds available on the day the payment ﬁle is received, which may be up to 2 days earlier than the scheduled payment date.

5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

Source: crediful.com

Apache is functioning normally

June 6, 2023 by Brett Tams

Real estate investment management firm Pretium Partners is acquiring thousands of homes from home construction company D.R. Horton Inc. in a $1.5 billion deal, as Bloomberg first reported.

The deal includes a combination of completed homes and homes that are not yet finished, according to the outlet, which cited people familiar with the transaction who asked not to be named.

Neither company commented to Bloomberg about the deal.

More than 4,000 homes are involved in the transaction, which are primarily located in high-demand markets in the Southeast and Southwest, the Wall Street Journal reported. The homes, planned as rentals, have already been leased.

The deal comes at a time when a lack of for-sale home inventory is boosting the appetite for homebuilders.

The transaction could also signal investors’ re-entry into the housing market after institutional investors shed properties at the end of 2022 following a drop in housing prices nationwide.

Founded in 2012, the Pretium platform capitalizes on investment and lending opportunities and has more than $50 billion of assets with real estate investments across 30 markets in the U.S, according to the firm.

Source: housingwire.com

Apache is functioning normally

June 6, 2023 by Brett Tams

Today we’ll check out a Southern California-based mortgage broker named “Lendevity,” which has been earning rave reviews lately.

Their name is actually a combination of lend and longevity, their way of saying they’ll be by your side throughout the loan process and beyond.

The company says it takes an “advisory approach” to better understand your financing needs and create a custom solution that fits your goals.

They do so using the latest technology, charge $0 lender fees, and aim to close loans in three weeks or less.

And they’ve got a loyalty program to boot if you come back to them a second time. Let’s learn more.

Lendevity Fast Facts

Online mortgage broker that offers home purchase and refinance loans
Founded in 2018, headquartered in Woodland Hills, CA
Licensed to do business in five states (AZ, CA, CO, OR, WA)
Charge $0 lender fees on most loans
Offer a loyalty program for repeat customers that waives 3rd party fees

As noted, Lendevity is a mortgage broker, meaning they connect consumers with their wholesale lender partners.

This gives them the ability to shop your loan so you don’t have to in order to find the best price.

They may also have access to unique loan programs the bigger banks might not offer.

The company is located in Woodland Hills, California and was founded in 2018. Despite being rather young, they’ve got consistently excellent reviews.

At the moment, they are licensed to do business in just five states, including Arizona, California, Colorado, Oregon, and Washington.

One benefit to using them is their lack of lender fees, along with a loyalty program if you come back a second or a third time.

How to Apply for a Mortgage with Lendevity

To begin, you can call them up, visit their office, or simply cruise over to the website and apply.

Since they like to take a hands-on approach, your best move might be speaking to a rep first to discuss your loan scenario.

From there they can determine eligibility and loan pricing, then you can apply via their website.

Their digital home loan application, which allows you to complete most tasks electronically, is powered by ICE Mortgage Technology.

You can fill out the app from any device, upload necessary documents, eSign disclosures, and track loan progress from start to finish.

They aim to close their loans in three weeks or less, which is also a plus if you’re in a hurry or simply don’t want the process to be dragged out.

What’s nice about mortgage brokers these days is they offer the same technology that the big fintech companies have, like Rocket Mortgage or Better Mortgage.

So you can get the best of both worlds when using a local broker. And those who need a little more attention get a loan guide throughout as well.

Loan Programs Offered by Lendevity

Home purchase loans
Refinance loans
Conforming loans backed by Fannie Mae and Freddie Mac
FHA loans
VA loans
Jumbo loans
Bank statement loans
Band-Aid loans

One of the benefits of a being a mortgage broker is the ability to offer home loan programs from a variety of different companies.

This allows Lendevity to extend a complete lending menu to its customers, even if they’ve had issues obtaining financing elsewhere.

Lendevity has options for new home buyers (home purchase loans) and existing homeowners (refinance loans), including cash out solutions.

They’ve got all the usual stuff like conforming loans backed by Fannie Mae and Freddie Mac, FHA loans, and VA loans.

The only major program they don’t seem to offer is USDA loans, which are reserved for rural home buyers.

They even offer jumbo loans with loan amounts up to $10 million. So even if you’re buying or refinancing an absolute mansion, they should offer a solution.

Those who’ve had trouble qualifying for a home loan in the past can take advantage of their so-called Band-Aid Loan, which pays off debts to improve credit scores and DTI ratios.

Then they can get you more permanent financing six months or so later.

If you’re a self-employed borrower, Lendevity also offers bank statement loans that don’t require tax returns to qualify.

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

Lendevity Mortgage Rates and Fees

While Lendevity doesn’t post their mortgage rates on their website, they do claim to utilize a transparent pricing model.

This means showing you a variety of mortgage rate and fee options that you can choose from depending on your needs.

For example, you may want to pay discount points for an even lower mortgage rate. Or you could be satisfied with a slightly higher rate in exchange for no fees whatsoever.

Lendevity says they don’t charge lender fees. And claims you won’t be charged an origination fee unless the circumstances of your loan program require it.

Not exactly sure what that means, but it sounds like they don’t charge fees in the vast majority of cases.

And either way, will probably structure your loan as a no cost mortgage, meaning nothing is paid out-of-pocket.

Anecdotally, I’ve seen their rates advertised on third-party websites like Zillow and they were among the lowest listed.

So my guess is they’re pretty competitive with other online, low-cost lenders out there, which may be cheaper than big banks and other household names.

If they can help you snag a low mortgage rate at the same time, it’s a win-win. No costs and a low monthly payment for as long as you keep your loan.

Speaking of, they have a loyalty program for existing customers who refinance a mortgage. In short, they’ll waive all third-party fees, such as title insurance and escrow.

That might give them another leg up on the competition if they’re already matching the lowest rate you find elsewhere.

Lendevity Mortgage Reviews

On Zillow, Lendevity has a perfect 5-star rating from 55 reviews. Nearly all of them indicated that either the interest rate or closing costs were lower than expected, or both in some cases.

They’ve also got a perfect 5-star rating on Yelp from 45 reviews and a similarly solid 4.9-star rating out of 5 on Google from nearly 120 reviews.

It’s the same story on the Better Business bureau (BBB) website, a perfect 5/5 from 28 customer reviews.

Lendevity is also an accredited business with an ‘A+ rating at the moment.

All in all, they appear to be very well-liked by their customers, despite not having hundreds or thousands of reviews. Hopefully it’s a sign of more good things to come.

To sum things up, Lendevity seems to be big on customer service like many mortgage brokers are.

They could be a good fit for a first-time home buyer who needs some additional hand-holding, or someone with a more complex loan scenario that a big bank might fumble.

If their mortgage rates are also low, they could be a good pick for just about any home buyer or existing owner looking to refinance.

Lendevity Pros and Cons

The Good

Can apply for a mortgage online in minutes
Offer a digital mortgage process
Do not charge lender fees
Loyalty program that waives third-party fees for return customers
Lots of loan programs to choose from
3-week average closing time
Excellent reviews from past customers

The Maybe Not

Only licensed in five states currently
Do not offer USDA loans

Source: thetruthaboutmortgage.com