Cogent Road adds compliance features to Business Spaces for mortgage industry

Cogent Road adds compliance features to Business Spaces for mortgage industry

January 11, 2009

Lenders One data shows shifts in loan products MortgagePress.comLenders One, FHA, VA, Scott Stern, statistics
Compared with total volumes through the third quarter of 2007,
Lenders One Mortgage Cooperative reports that origination levels of
FHA/VA loans have more than tripled through the same period for
2008. Lenders One, a national alliance of mortgage bankers, tracks
and compiles origination activity of its more than 125 member
companies by product, geography and member, and these results
reflect the most recent available data.
"We are experiencing a changing marketplace, and our members
have appropriately adjusted their business models and lending
strategies to meet borrower demand," said Scott Stern, CEO of
Lenders One. "Lenders One continues to provide member bankers with
the resources, knowledge, support and access to quality loan
products to be successful and competitive."
Before the explosion of interest in FHA/VA products in 2008,
2007 data shows that Lenders One originated a strong volume of FHA
loans, increasing on average $3.3 million each quarter. Then in
2008, FHA/VA originations nearly doubled during the first quarter
of 2008 compared to the fourth quarter of 2007, and volume has
continued to grow. During the same period, Alt-A (low doc, no doc
and stated income) and nonprime (based on credit) lending
dramatically decline. Now after three quarters, Lenders Ones 2008
Alt-A total volume is less than three percent of the volume
recorded up to this point in the year prior.
"FHA has been our most important product of 2008," said Stern.
"FHA has helped borrowers all across the U.S. refinance out of
dangerous non-prime and Alt-A loans into safer, more secure FHA
products." In early 2007, FHA represented only one percent of the
cooperative's total originations--it now comprises nearly 50
percent of Lenders One's total activity.
Stern continued, "We are likely to see changes continue in the
types of loans to which lenders and investors feel comfortable
applying risk, and that at the same time meet the needs of the
general public. Lenders One is fortunate to grant its members
access to several kinds of loan programs and to have a membership
so committed to providing their customers with uncompromised
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