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This matrix should be used to
find general program information/
product types, unusual property or
loan characteristics. Please consult
the Prime 1st Mortgages matrix for
detailed program criteria.
COMPANY NAME
Dumont Land Finance Corp.
877-526-3111
www.dumontland.com
Nationstar Mortgage LLC
877-698-7300
www.nationstarmtg.com
1 Acreage: Max acres on res. property (U=Unlimited)
2 Condo: Non-Fannie Mae/Freddie Mac warrantable
3 Condo: With only 2-3 units
4 Condotels at resort destinations
5 Co-ops
6 Dome homes
7 Land: Purchase of subdivided lot
8 Land: Purchase of undeveloped raw land
9 Log homes
10 Manufactured home (post-1976)
11 Second dwelling on single tax lot
12 Zoning: Non-owner < 5 units: Zoned other than residential
PROPERT Y-RELATED ITEMS
123456789101112
U
Y*
CO GA MO NM OK TX VA
U
Y
Y
NATIONWIDE except: AK AL DC HI MS
13 Aliens/foreign nationals: No green
card, second home
14 Aliens/foreign nationals: No green card,
investment property loans are available
15 Builders, Realtors, developers:
No-income verifier loans available
16 Corps., trusts, partnerships and LLCs
17 Minimum loan amount
18 Non-owner: More than 10 financed prop-
erties allowed regardless of loan amount
19 Ratio: Combined ratios are allowed
with non-occupant co-borrower
20 Remodel: Conventional at after-
remodel value
MISCELLANEOUS
13 14 15 16 17 18
19 20
15K
PROGRAMS AND OPTIONS
21 Bridge loans
22 Freddie Mac: Loan Prospector (LP)
23 Freddie Mac: Affordable Gold
24 Fannie Mae: Desktop Originator (DO)
25 Fannie Mae: MyCommunityMortgage
26 Fannie Mae: Desktop Underwriter (DU)
27 Govt.: FHA Direct Endorsement
28 Govt.: VA
29 Lock: Longest lock available (number of days)
30 Lock without property address
31 Pledged asset option
32 Reverse mortgages
33 Tenants-in-common ( TIC)
34 Rural property/part-time farm
21 22 23 24 25 26 27 28 29
30 31 32 33 34
* Rural, personal use only. 5-acre minimum, $5K max/acre
50K
YY
Y
YYYY
60 Y
Nationstar Mortgage operates under the well-established Champion Mortgage brand.
Tell lenders you found them in Scotsman Guide
Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product
terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: matrixfeedback@scotsmanguide.com.
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« articles »
Pending Changes
Require Attention
Changes to APR and yield-spread-premium
calculation highlight Reg Z plan
the mortgage world could change
dramatically in about a year as a result of a recent Federal Reserve Board
proposal to make major alterations to
the Truth in Lending Act (TILA). Those
changes would alter the way annual
percentage rate (APR) is calculated,
create new disclosures for prospective
borrowers and spell the end of yield-spread premiums ( YSPs).
The Fed announced and published its
proposal this past summer. The clock
is now ticking on the comment period
(comment: sctsm.in/TILAcm), which
ends Dec. 24. For brokers, it’s wise
not only to educate yourself about the
changes but also to take advantage of
the comment period.
About the changes
The Fed’s proposed amendments to
TILA apply to closed-end mortgage
loans and home-equity lines of credit.
They include new single-page disclosures, including one called “Key Questions to Ask About Your Mortgage” and
another called “Fixed vs. Adjustable
Rate Mortgages.” The ARM document
is designed to replace the “Consumer
Handbook on Adjustable-Rate Mortgages” booklet.
Among other things, the Fed is proposing to include more loan closing
costs in the calculation of APR. Mortgage brokers and compliance staffs
have been vexed for years about
which fees are considered prepaid finance charges — and hence, included
in the APR calculation — and which
are not. In about a year, if the proposal is finalized, APR will more accurately represent the costs of a loan.
The Fed also wants lenders to provide prospective borrowers with a
chart showing how their proposed APR
compares with the APRs offered to borrowers with excellent credit.
The issue garnering the most attention from mortgage brokers, however,
is the Fed’s proposal to “prohibit certain payments … based on the loan’s
terms or conditions.” This would make
it difficult, if not impossible, to be paid
a YSP.
By Christopher Cruise
Senior national trainer
LenderTraining.com
This form of indirect compensation
that lenders pay to brokers is controversial because it can provide an incentive
for brokers to charge borrowers higher
rates. Some opponents of YSP consider
it a kickback, and they have worked
hard to eliminate the payment.
The Fed’s proposal also wants to
prohibit mortgage brokers from steering consumers to transactions not in
their best interests.
Inside YSP thinking
The proposal’s comments on YSP are
uniformly negative. The Fed believes
YSPs “can create financial incentives
to steer consumers to riskier loans
for which loan originators will receive
greater compensation” and “present
a significant risk of economic injury to
consumers.” Further, the Fed believes
“consumers generally are not aware of
loan originators’ conflict of interest and
cannot reasonably protect themselves
against it.”
The proposal does acknowledge that
YSPs may provide some benefit to consumers. According to the Fed, this occurs when “consumers do not have to
pay loan originators’ compensation in
cash or through financing.”
The Fed, however, also notes that
such a benefit may be outweighed
when borrowers pay a higher interest
rate or agree to a prepayment penalty
or adjustable rate they otherwise may
not have selected. The Fed goes as far
as to say that payment of YSP may lead
to deceptive lending practices.
This prohibition wouldn’t apply to
payments consumers make to brokers
directly, though in those cases, brokers
couldn’t receive compensation from another party.
It seems clear the Fed has lost confidence in the power of disclosures,
claiming even a disclosure that reveals
or explains YSP “would be insufficient
for most consumers to avoid the harm”
caused by YSPs. Coincidentally, the new
good-faith estimate the U.S. Department
of Housing and Urban Development will
require as of Jan. 1 forces brokers not
only to disclose YSP but also to credit
it to borrowers. Despite the contention
by mortgage brokers that YSP can help
borrowers pay closing costs and lead to
more closed loans, this form of payment
seems likely to disappear. •
(Editor’s note: This past October, U.S. Rep.
Gary Miller [R-Calif.] indicated Congress would
address the YSP issue by merging House Resolution No. 1728, which passed the House, and
House Resolution No. 3126, which passed the
House Financial Services Committee. At press
time, the Senate had yet to consider the bills.)
Christopher Cruise, senior national trainer at
Lender Training.com, is an expert trainer of
residential mortgage originators and processors. He has worked with some of the nation’s
largest mortgage lenders and has helped new
and veteran originators pass licensing exams.
He is on the board of directors of the National
Association of Responsible Loan Officers
( www.narlo.com). Reach Cruise at Christopher
Cruise@starpower.net or (240) 475-5633.
