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

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
From left: PropTech's Thomas Hennessy and Joseph Beck; Appreciate's Chris Laurence (Appreciate, LinkedIn/Tom Hennessy, LinkedIn/Joseph Beck, iStock)
Single-family rental platform Appreciate to go public in SPAC deal
Single-family rental platform Appreciate to go public in SPAC deal
From left: Douglas Elliman's Scott Durkin, Stephen Kotler and Avi Dan-Goor (Douglas Elliman, iStock)
Douglas Elliman bets on Vegas in westward expansion
Douglas Elliman bets on Vegas in westward expansion
366 State Street and 37 Sidney Place in Brooklyn (Corcoran, Zillow)
Passive house asking $15M tops Brooklyn contracts
Passive house asking $15M tops Brooklyn contracts
100 Eleventh Avenue (iStock, Rhododendrites/CC BY-SA 4.0, via Wikimedia Commons, Illustration by Kevin Cifuentes for The Real Deal)
Lower-end listings dominate Manhattan’s luxury deals
Lower-end listings dominate Manhattan’s luxury deals
Wildfire, Houses
One in five homes facing wildfire risk, report says
One in five homes facing wildfire risk, report says
(Top) 1580 Meadow Lane in Southampton NY and (Bottom) 2056 Montauk Highway in Amagansett NY (Zillow)
A tale of two oceanfront Hamptons homes
A tale of two oceanfront Hamptons homes
arrow_forward_ios

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

Loading...