It allows you to extend underwriting approval to those borrowers previously unable to receive conventional financing. Level IV loans are ineligible for delivery. This feature allows you to extend mortgage financing to a greater segment of borrowers previously reliant on alternative financing at much higher rates. It also has a rate reduction incentive to encourage borrowers to improve their creditworthiness. Mandatory price adjustments and limited waiver of representations and warranties are applicable to Expanded Approval with Timely Payment Rewards.
Lender benefits New business opportunities to offset declines in refinances.
Provides an outlet for close to 100 percent of your conventional business. Pricing that is more competitive than what is currently available to borrowers with blemished credit. Limited waiver of underwriting representations and warranties. Increased customer retention as borrowers improve their credit. Consumer benefits Access to conventional financing options.