ALAMO, Calif. – August 6, 2014 – RPM Mortgage Inc., a leading private mortgage lender, today introduced new loan solutions for borrowers whose lending profile falls outside of the recently introduced Qualified Mortgage (QM) guidelines.
RPM’s new loan programs, called the RPM Tailored Line of Loan Solutions, are designed for residential borrowers who are looking for loans of up to $4 million but have found themselves shut out by the new QM guidelines. RPM’s Tailored Line provides innovative solutions for the self-employed or the recently retired who have considerable equity, assets and credit but may be challenged by income verification requirements, which have limited their borrowing options in the past. In addition, these solutions give options to borrowers with a short credit history, credit scores that are marginally outside of the guidelines, or debt to income outside of QM’s established 43% ratio.
The self-employed and the retired community make up a significant portion of the housing market in the United States. New Census Bureau reports project that the nation’s 65-and-older population will nearly double in size — hitting a total of nearly 83.7 million — by 2050. By then, more than 1 in 5 Americans will be at least 65 years old. In addition, an ever-increasing share of U.S. jobs are supported by privately owned, small businesses. In other words, the self-employed are a critical component of the nation’s economy. RPM’s new loan solutions are designed to serve the needs of otherwise qualified borrowers.
RPM’s founder and CEO, Rob Hirt, comments on the launch of the Tailored Line. “RPM continues to innovate within the ever-changing economy to provide exceptional service to our borrowers, at every stage. In the new regulatory climate, we are seeing that a certain segment of financially sound borrowers is having difficulty finding loan products that suit their needs. To support these homeowners and borrowers in our communities, RPM has created programs that will help them secure a loan that meets their financial requirements without being penalized with an exorbitant interest rate.” While industry experts estimate non-QM opportunities make up an estimated 10% of the current originations market, Hirt projects these loans will make up roughly 20% of new originations at RPM.
The new loan products include the following: • Alternative income verification for the self-employed, requiring only one year of tax returns. • 50% LTV for up to $4 million in borrowing for those with substantial assets, considerable equity and excellent credit. • 65-80% funding on loans from $250,000-$4 million for borrowers with a robust investment portfolio.
Mark McLaughlin, CEO of Pacific Union International, a real estate firm in Northern California, is pleased with RPM’s new products. “Providing exceptional service is our number one goal. I can always count on RPM to assist our agents with completing a real estate transaction and passing on that high level of service to our clients. RPM’s new loan products will unlock the housing market for the homebuyer whose profile falls outside of the QM guidelines.”
For more information on the new loan products, visit: staging.rpm-mtg.com.
About RPM Mortgage Inc.
Based in Alamo, California, RPM Mortgage Inc. is a private mortgage lender ranked by Scotsman Guide as the No. 5 mortgage lender in Top Retail Volume and No. 14 in Top Overall Volume for 2013. In addition, RPM is the only privately owned U.S. mortgage originator to have earned Standard & Poor’s (S&P) Above Average ranking in all ratings categories and was also named one of S&P’s Select Servicers in 2014. Since 1986, trust, knowledge and community focus have been the core values upon which RPM has built a reputation as a highly regarded, financially sound mortgage lender. RPM services more than $3 billion in loans and their footprint of nearly 60 branches serves communities across Arizona, California, Colorado, Nevada, Oregon, Texas and Washington. For more information, please visit https://staging.rpm-mtg.com, call 925-295-9300, or follow @RPMMortgage.