Skip to main content

CBC Mortgage Agency Expands Small-Balance Lending With Lender Incentives

Aug 18, 2020
Neighborhood with lower-priced homes. PhotoCredit: iStock.com/peterspiro
Director of Events

CBC Mortgage Agency, a housing finance agency, is expanding its small-balance mortgages products in low-priced communities in hopes to make small-balance mortgages more lucrative for its network of correspondent lenders.

The company was inspired to make the move from The New York Times article, "Where a Little Mortgage Goes a Long Way." The article stated that home lenders tend to be reluctant to write loans in areas where mortgage are too small to be profitable. The report also noted that Blacks and Hispanics looking to buy a home in lower-priced neighborhoods are particularly impacted by the trend.

"Home lenders struggle with profitability on low-balance loans because of the high cost to originate a loan," according to the press release. "In the Mortgage Bankers Association's Quarterly Mortgage Bankers Performance Report, the trade group indicated that the average cost to originate a loan climbed to $7,982 in the first quarter of this year."

"Our mission is to make homeownership possible for more low-income consumers," said CBC Mortgage Agency president Richard Ferguson. "After reading Matthew Goldstein’s article, we saw an opportunity to further our mission."

Read more about CBC Mortgage Agency.

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Aug 18, 2020
FHFA Approves Freddie Mac's Second Mortgage Pilot

The GSE's limited program will permit cost-effective cash-out refinances

Jun 24, 2024
Former Rocket Mortgage SVP Turned UWM Broker Partner

Zoom Home Lending, headed by former Rocket Mortgage executives, partner with their old wholesale rival, UWM

Jun 20, 2024
Potential For Declining Rates This Summer, Following CPI Report

Norada Real Estate Investments said "rates likely to decline" after the latest CPI report.

Jun 17, 2024
Looking For Change Under Every Couch?

Don’t overlook the obvious – employees have ideas for cost savings, too

Jun 10, 2024
New American Funding Announces New Cash-Offer Program

Similar to Opendoor and Homeward, NAF Cash Maps offers buyers a bidding war advantage

Jun 05, 2024
CFPB Issues Public Inquiry On Junk Fees Affecting Closing Costs

Agency seeks to understand why closing costs are up, who is benefiting, and how costs can be lowered.

May 30, 2024