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.

Published
Aug 18, 2020
Fannie Mae Extends Multifamily Protections Indefinitely

Fannie Mae announced that its multifamily COVID-19 forbearance program has been extended indefinitely to support multifamily property owners and renters experiencing financial difficulties due to COVID-19.

Industry News
Sep 27, 2021
LoanDepot Lawsuit Alleges Wide-Scale Fraud

‘One of the most egregious wide-scale fraud for profit schemes since the years leading up to the Great Recession,' a recent lawsuit claims.

Industry News
Sep 27, 2021
Federal Regulators Race To Address Cryptocurrency Risks

Cryptocurrency is quickly morphing into a volatile but widely embraced innovation, and federal regulators are racing to address the potential risks to consumers and the market. 

Industry News
Sep 24, 2021
MBA Initiative Seeks To Close Racial Homeownership Gap

Says its advocacy, partnerships & connections will help increase opportunities for minority borrowers

Industry News
Sep 24, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021