Mortgage lender ResMor Trust has seen its mortgage volume jump almost 60% in the first two months of 2008 versus 2007…and last year was a record year for the company.
The reasons for ResMor’s success are largely twofold, according to sources. For one, the company offers solid broker incentive programs (i.e. more compensation). Moreover, ResMor’s mortgage offerings are quite broad and entail flexible underwriting guidelines.
On Monday, ResMor will also launch a new strategy by offering insured conventional mortgages (and paying the insurance premiums for the client). These mortgages are designed for people with good credit and a 25% downpayment. According to the company, this means: No more manual appraisals, lower required credit scores, faster approvals, expanded lending areas, and better rates.
On a more somber note, ResMor has suspended lending on its conventional subprime “C75” and “C65” mortgages. These products were geared to clients with credit issues who couldn’t get approvals with traditional lenders. The company said the decision was due to “challenges in the asset-backed commercial paper market.” That is, unfortunately, an all-to-familiar reason to most readers of CMT.
ResMor’s other subprime products will supposedly remain intact however.
ResMor Trust is a subsidiary of GMAC.
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