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As volume has slowed due to market conditions and fluctuating interest rates, it’s critical for mortgage lenders to find creative ways to maximize profits by utilizing all available options.
Specifically, bankers should take a closer look at government loan products — FHA, VA, RD. These loans may be an attractive option for borrowers who could benefit from lower down payment products that may provide flexibility on factors such as credit, previous delinquencies or job history. Additionally, if a bank is set up to offer VA and RD through either CORE or Alliance, lenders have the potential to generate higher fee income and maintain control of fees while offering competitive rates. And as always, all three government loan products — FHA, VA and RD — are offered through the Heritage channel; which provides the ability to offer the products, but with no risk to the bank.
Just like with conventional loans, IBMC retains the servicing on government loans, offering institutions a “safe servicer” that won’t solicit customers for other banking products. IBMC also offers personalized response and feedback to any servicing situation and will direct borrowers back to you if and when they ask to talk about a new loan.
More Information
For institutions that have no or limited experience working with government loans, IBMC can provide product-specific training and guidance through the set-up process. To get started, contact Shana Light or Megan Severson.
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