Regardless of what you do in life, there are rules. In the mortgage business many of them are now set by the Consumer Financial Protection Bureau (CFPB), by the FDIC, HUD, FNMA, FHLMC, and so on. And a lender’s relationship with those governing bodies is very important, and it is something on which we at JMAC pride ourselves. And we feel that it separates us from many of our competitors.
JMAC’s AEs believe it is imperative for their brokers to know a lender’s relationship with Fannie Mae & Freddie Mac. It is vital that a lender have a solid relationship with one or both of these agencies regardless of whether or not a loan is being sold there. Questions come up all the time for our AE’s about loans that are slightly “outside of the box.” If a broker is working with a lender that sells the loan to another investor, and that loan is sold on the secondary market, there may be issues with the file or process. JMAC believes it is essential to work as closely with direct investors as possible. The more hands touching the file, the more scrutiny that file is going to have when the loan ultimately is delivered to the end investor.
Many of our brokers tell their JMAC AE about other lender’s overlays. Everyone has them, to one degree or another. They are additional constraints an individual mortgage company may have beyond what Fannie Mae and Freddie Mac, or even large investors, deem as acceptable as traditional underwriting standards. For example, some mortgage companies will not let you pay off debt to qualify while others do. JMAC does our best to minimize overlays within prudent guidelines and risk profiles
Our brokers are very concerned about product offerings. Not all lenders carry the same types of loans and some have differing restrictions for some loan types. The debt-to-income ratio (DTI) can differ between lenders, or among jumbo investors. Or minimum credit score requirements may vary.
We encourage our brokers to know what is out there. Where our brokers obtain a mortgage for their clients is entirely up to them as a smart, well-informed broker. Intelligent, well-informed brokers help JMAC be a better company.