Verus Mortgage Capital (VMC) has unveiled its Closed End Second Lien Mortgage Program, responding to the rapid surge in home equity levels nationwide. This program will empower lenders to tap into the escalating home equity market by offering borrowers an avenue to access funds for consolidating expenses without affecting the interest rate on their primary mortgages.
VMC presents this new offering as an answer to prevalent market needs. Dane Smith, president of VMC, emphasized the company's commitment to delivering timely products. He commented, “With the current housing market dynamics, we find this an opportune moment for originators to roll out a compelling home equity product.”
This program allows for loans of up to $500,000 at fixed interest rates and with fixed monthly payments. Key features of the program comprise a maximum Combined Loan-to-Value (CLTV) ratio of 90%, a minimum credit score requirement of 680, standard income documentation spanning two years, and the property in question must be the borrower's primary residence. The program also caters to stand-alone transactions.
Recent data from ATTOM underscores the growing equity-rich nature of the housing market. Close to half of the properties with mortgages now fall into this category, marking a substantial increase from the figures seen in 2020. This indicates that homeowners are now more equity-rich compared to a few years prior.
VMC, established in 2015 and backed by Invictus Capital Partners, operates as a Non-QM correspondent investor. It caters to all 50 states and the District of Columbia, primarily focusing on the non-agency sector. Correspondent lenders are provided with an extensive spectrum of home financing options tailored for credit-worthy borrowers.
Headquartered in Washington, D.C., and operating out of Minneapolis, VMC has acquired over $22 billion in non-agency loans since its inception. Additionally, through its affiliate collaborations, the company has executed 50 securitizations.
