Investment and multifamily loans remained the highest-risk categories, according to the data. An estimated one in 43 investment property applications and one in 27 multifamily applications showed signs of fraud risk during the quarter, well above the broader industry average. The percentage ofrefinancesin the Cotality data set has increased year-over-year by19%, yetthe fraud index is up 1.5% over that time.
Applying for a home loan is a pain. You have to produce a heap of documents - bank statements, tax returns, employment records, tallies of investment accounts - to prove the stability of your financial footing, then wait for a mortgage underwriter to comb through all of it before giving you the thumbs up. I spoke with one exasperated homebuyer who described the process as a "borderline invasion of privacy."
I would say the new product offering specifically resonates with promise number five: helping everyone home means everyoneWe can open up more markets for our partners, talking with investors out there, and start really helping everyone home. Scholl described a market shift over the last few years that has generated more interest in DSCR. The new product allows purchase, rate-term refinances, and cash-out refinances with a max loan amount of $3 million for the first two and $2.5 million for a cash-out.
Through UHM Platinum, investors will have access to products that include bank-statement loans and debt-service-coverage ratio (DSCR) loans as well as qualified mortgage options such as jumbo and non-owner-occupied loans. UHM said it plans to continue expanding its non-QM product suite in the coming months to meet changing market demand. Union Home has enjoyed significant growth to our non-QM business, CEO Bill Cosgrove said in a statement.
The group reportedly purchased more than 700 homes largely in majority-Black neighborhoods at inflated prices financed by debt service coverage ratio (DSCR) loans. Investors are accused of taking out $100 million in DSCR loans from dozens of private lenders using projected rental income as collateral. According to the report, many transactions were recorded for prices far above each property's previous sale value or public appraisal estimate.