The Five Star Institute has announced the formation of the Non-Prime Lending Council (NLC), which is open to all professionals in the industry.
The NLC, including industry leaders Angel Oak Mortgage Solutions and Deephaven Mortgage, was formed to provide professionals with a platform to address and discuss industry challenges, promote growth, and highlight lending practices that are essential to long-term industry success.
Other organizations supporting the council are: ACC Mortgage, First Guaranty Mortgage Corporation, SHD Legal Group, P.A., Sprout Mortgage, and Velocity Mortgage Capital.
Non-prime loans are made to borrowers who have past credit events, or events such as foreclosures, bankruptcies, short sales, late payments, or collections. Any of these—or a combination of them—could make it difficult for these borrowers to be approved for a home loan.
"The formation of the Non-Prime Lending Council is critical to supporting an underserved sector of future homeowners, whose circumstances do not conform to conventional mortgage products," said Ed Delgado, President & CEO of Five Star Global. "The focus of this association of leaders in the Non-QM market will be ensuring that qualified mortgage applicants have the ability to responsibly access credit."
In May, CoreLogic released its ABX Collateral Performance report, which found that non-QM issuances are expected to rise.
“We expect non-QM RMBS issuance to continue to increase in 2019, with the credit quality of the collateral weakening somewhat but remaining overall consistent with the prior year,” Morningstar stated in a release. “Also, we expect the non-QM RMBS transaction structures to evolve as issuers explore ways to optimize funding costs and maximize proceeds from securitization.”
The council will be comprised of an Executive Membership group, which will be capped at nine members and there are currently two slots remaining.
Professionals can be a General Member, which includes the opportunity to participate in NLC subcommittees, admission for one member of your organization to attend the semiannual NLC member meeting, brand positioning on the NLC website, and select features in the MReport magazine.
For more information on membership, please contact Kevin McCrea (firstname.lastname@example.org), or call 214.525.6756.