RPM Mortgage Inc. has introduced new loan solutions for borrowers whose lending profile falls outside of the recently introduced Qualified Mortgage (QM) guidelines. RPM's new loan programs, called the RPM Tailored Line of Loan Solutions, are designed for residential borrowers who are looking for loans of up to $4MM but have found themselves shut out by the new QM guidelines. RPM's Tailored Line provides innovative solutions for the self-employed or the recently retired who have considerable equity, assets and credit but may be challenged by income verification requirements, which have limited their borrowing options in the past. In addition, these solutions give options to borrowers with a short credit history, credit scores that are marginally outside of the guidelines, or a debt-to-income outside of QM’s established 43 percent ratio.
The self-employed and the retired community make up a significant portion of the housing market in the United States. New Census Bureau reports project that the nation’s 65-and-older population will nearly double in size — hitting a total of nearly 83.7 million — by 2050. By then, more than one in five Americans will be at least 65 years old. In addition, an ever-increasing share of U.S. jobs are supported by privately owned, small businesses. In other words, the self-employed are a critical component of the nation's economy. RPM's new loan solutions are designed to serve the needs of otherwise qualified borrowers.
"RPM continues to innovate within the ever-changing economy to provide exceptional service to our borrowers, at every stage. In the new regulatory climate, we are seeing that a certain segment of financially sound borrowers is having difficulty finding loan products that suit their needs," said RPM's Founder and CEO Rob Hirt. "To support these homeowners and borrowers in our communities, RPM has created programs that will help them secure a loan that meets their financial requirements without being penalized with an exorbitant interest rate."
While industry experts estimate non-QM opportunities make up an estimated 10 percent of the current originations market, Hirt projects these loans will make up roughly 20 percent of new originations at RPM.
The new loan products include the following:
►Alternative income verification for the self-employed, requiring only one year of tax returns.
►50 percent LTV for up to $4 million in borrowing for those with substantial assets, considerable equity and excellent credit.
►65-80 percent funding on loans from $250,000-$4 million for borrowers with a robust investment portfolio.