CBC Mortgage Agency Expands Small-Balance Lending With Lender Incentives – NMP Skip to main content

CBC Mortgage Agency Expands Small-Balance Lending With Lender Incentives

Navi Persaud
Aug 18, 2020
Neighborhood with lower-priced homes. PhotoCredit: iStock.com/peterspiro

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.

Aug 18, 2020
Lakeview Loan Servicing Faces Multiple Lawsuits Over Data Breach

At least a dozen civil lawsuits have been filed against the company, all seeking class-action status.

Industry News
May 26, 2022
Homepoint Rolls Out Jumbo ARM Loans

Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.

Industry News
May 25, 2022
Planet Home Lending Expands in Oregon

New team in Portland focuses on construction lending in the Northwest.

May 24, 2022
PennyMac Cutting 207 Jobs

A wide variety of positions are affected.

Industry News
May 24, 2022
Loan Officer Charged With Bank Fraud, Identity Theft

If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment.

Industry News
May 24, 2022
Openn Launches Pilot with bridgeMLS For Sales In California

Agents in Northern California, Bay Area will be able to list property and accept offers using the platform. 

May 24, 2022