This lender plans to underwrite $1B in mortgages with no income, no asset verification

Resi investors can borrow from an Austin-based lender without verifying their income or assets

TRD NATIONAL /
Apr.April 21, 2019 11:00 AM

(Credit: iStock)

Austin, Texas-based 360 Mortgage Group just revealed that it will conduct a pilot program to test the viability of no-income, no-asset mortgage loans by originating up to $1 billion of them to finance investor-owned homes.

The housing crisis in 2008 stemmed largely from defaults on sub-prime mortgages, or so-called NINJAs – borrowers who qualified for a home loan with no income, no job and no assets verified. Lenders have since stopped making NINJA loans, but one is set to offer another version, NINA loans, to landlord borrowers without verifying their income nor their assets, according to HousingWire.

The mortgage banking firm, 360 Mortgage, calls the loan Agency NINA and will offer it to loan applicants with FICO scores as low as 620. (FICO scores below 670 brand loan applicants as sub-prime, according to Experian.)

Despite the use of “Agency” in the name of the loan, 360 Mortgage Group’s loans are not backed by government-sponsored enterprises Fannie Mae or Freddie Mac.

Andrew WeissMalik, COO at 360 Mortgage Group, told HousingWire the Agency NINA loan is a solution for residential real estate investors who “don’t fit within the highly regulated, ultra-conservative guidelines every other lender offers.”

Bank of America is also getting into sub-prime lending. Last fall, it was reported the bank was underwriting $10 billion in mortgage commitments to borrowers with non-traditional backgrounds in partnership with a nonprofit brokerage. [HousingWire] – Mike Seemuth


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan’s cold, suburbs and Brooklyn are hot: July contracts

Manhattan’s cold, suburbs and Brooklyn are hot: July contracts
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
The weekly survey tracking purchase loans saw a seasonally adjusted decline of 2 percent in the final week of July. (iStock)

Home loan applications fall again amid tight credit rules, weak job market

Home loan applications fall again amid tight credit rules, weak job market
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
From left: Trinity Investments CEO Sean Hehir and Benchmark Real Estate Group principals Aaron Feldman and Jordan Vogel (iStock, LinkedIn, Trinity Investments)

“Blank-check” companies make a comeback in real estate

“Blank-check” companies make a comeback in real estate
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...