Monday's episode of the Mortgage Leadership Outlook series
featured Kevin DeLory, senior vice president of wholesale and correspondent for Carrington Mortgage Services
. DeLory connected with series host Andrew Berman, head of engagement and outreach for National Mortgage Professional
magazine, to discuss how Carrington has been keeping lending standards open for applicants with credit scores below 600 at a time where other lenders are not.
As the COVID-19 outbreak continues to pose challenges for the mortgage industry, the Mortgage Leadership Outlook series looks to help you, the mortgage professional, navigate through these times of uncertainty.
Recently promoted to his role
, DeLory has over 18 years of experience on the sales side of the mortgage industry. Prior to his time with Carrington, DeLory worked for a number of companies, including Option One Mortgage, New Century, Equifirst and Mid Island Mortgage Wholesale.
DeLory says that there are some folks who may have hit bumps in the road earlier on in their life when it comes to credit. However, at Carrington, the company looks at people who are working through their past hardships. The company believes that folks who are working to better their credit scores don’t deserve to be denied a loan. As DeLory puts it, there’s a difference between a 550 up and a 550 down.
More Highlights From DeLory’s MLO Visit
►Carrington is still putting out loans for folks with a minimum credit score of 550, which is the opposite of many companies that have created stricter lending standards. DeLory’s company decided it’s better to give folks products that other lenders are running away from. It opens up more product options for brokers and helps bolster the company in tough times.
►DeLory said brokers want “ease of use” when asked they should look for technology-wise. “They want to be able to upload their fees and get an LE generated. They want to be able to impress the CD early in the process because with all of the oversight and all the new rules, they want to make sure they’re compliant, get ahead of it and make sure it’s done in a timely manner. They want that CD out, so it doesn’t hold up their closing. They want their front end to be easy to use and easy to price a loan so they can have a borrower on the phone and quote them what their pricing will be and what they’ll need for conditions for that loan.”
►“Rates are only an issue in the absence of a value.” DeLory says that Carrington delivers a number of valuable tools for brokers to help borrowers get a loan. This gives the broker the opportunity to inspire borrower loyalty. Down the line when other companies are pitching them to refinance as that 550 score rises to 680, the borrower is more likely to work with the company that was willing to give them a chance and get an initial loan with a low credit score.
See all the interviews from the Mortgage Leadership Outlook series on its YouTube channel
and check out the full episode of Mortgage Leadership Outlook with DeLory and Berman below.