Skip to main content

NAMB teams up with PRBC

Sep 25, 2006

Exceptional loans for exceptional borrowersJoseph BadalThornburg Mortgage, Jumbo Loans, Super Jumbo Loans A small, but savvy, group of lenders has found that targeting super jumbo borrowers is a great way to expand their business. Although the incidence of super jumbo loans is quite small compared to the average mortgage loan, and the ease of closing a super jumbo loan has historically been more difficult than closing a conforming loan that fits into an automated underwriting system (AUS), the rewards for funding a $1 million or larger loan are higher. Unlike a conforming loan that fits inside a black box AUS and is readily acceptable to a warehouse lender or the typical investor, a super jumbo loan often needs to be tailor-made because the borrowers tend to be highly sophisticated and have complicated financial situations. These handcrafted loans are often not acceptable to the usual investor or warehouse lender. But for the lender that is willing to spend the extra time to reap the extra benefits, the super jumbo loan category can be exceptionally lucrative. So, how do you go about participating in this large loan arena? First and foremost, you need to identify an investor partner that specializes in purchasing super jumbo loans. Typically, this investor needs to be a portfolio lender that specifically caters to borrowers with high-dollar, complex financial needs. The investor needs to follow a policy of crafting personalized loan solutions for borrowers who use mortgages as financial planning tools. Additionally, the investor should apply a commonsense approach to underwriting a loan and not be a slave to a black box AUS. Sophisticated borrowers needs dont fit inside an AUS. They are often self-employed and have a large part of their net worth tied up in their companies. Alternately, the largest part of their income may come from bonuses and profit sharing, rather than salary. Their credit scores might be suppressed because they have loans on a large number of real estate properties. The super jumbo investor needs to be flexible, and the right investor partner can revolutionize the quality and size of your business. Joseph Badal is the CEO and chief lending officer of Santa Fe, N.M.-based residential mortgage lender Thornburg Mortgage. He may be reached at (888) 898-8698 or e-mail [email protected].
About the author
Sep 25, 2006
STRATMOR, Teraverde Deal A 'Merger Of Equals'

The recent merger of mortgage advisory firms came without the need to lay people off or make any major staffing changes.

May 23, 2024
NEXA Pays Loan Officers 100% Of Commission Splits

LOs won't pay per-file fees or other hidden fees with NEXA100, says NEXA Founder and CEO Mike Kortas.

May 22, 2024
The Right Prescription

‘Doctor Loans’ making healthy strides in Florida

May 21, 2024
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024