SouthStar Funding has released a new sub-prime loan product, Simple Score, which was developed to simplify the qualifying of sub-prime borrowers. The product bases credit decisions almost entirely on the borrower's middle FICO score. Simple Score is available to borrowers with credit scores of 540 and higher, on all property types up to $1 million and for up to 100 percent loan-to-value (LTV).
Made available to its broker network on April 25, Simple Score removes many of the stipulations and requirements for qualification typically found in sub-prime products. Because the product is mostly score-driven and 100 percent accurate, brokers can pre-qualify a sub-prime borrower knowing the loan will be underwritten. Simple Score's pricing and high LTV allowances enable brokers to replace complicated matrixes with one product.
"Our nationwide broker network demands products that will enable them to succeed in a very competitive market, and Simple Score provides a unique advantage to them," said Michael Fierman, executive vice president for SouthStar Funding. "This matrix removes most of the 'ifs' typically needed to qualify a borrower while being extremely easy to use. The results are loans that close more smoothly and quickly, more efficient underwriting and processing, and a greater pull-through rate for our brokers. Simple Score is a direct result of our continued focus on providing superior service and competitive products."
SouthStar Funding's daily sub-prime loan submissions have doubled since the Simple Score rollout. Record numbers of daily submissions have occurred and activity on StarQual, SouthStar Funding's online pre-qualification tool, has doubled.
Simple Score products available include interest-only, fixed-rate, 2/28 adjustable-rate, 3/27 adjustable-rate and 5/25 adjustable-rate mortgages, and can be combined with second mortgages. With full documentation and stated income loans, LTV of up to 100 percent is allowed.
For more information, visit www.southstar.com.