Company maintains a stable ranking
Acra Lending has been assigned the RO2 residential mortgage originator ranking by DBRS, which affirms the company’s “good origination quality.”
DBRS confirmed its “RO2” evaluation of the privately held lender, which has been “profitable six out of the last seven years,” according to the rating agency. Acra specializes in non-qualified mortgage wholesale and correspondent lending programs, including bank statement, investor cash flow, ATR-in-full, and ITIN loans.
The ranking also reflects Acra’s stable and experienced senior management team. However, due to declining production volumes, the company reduced its origination staff by 170 full-time employees over the past year.
“The company continues to monitor its staffing levels to hire ahead of future growth projections,” DBRS wrote in its report.
Acra’s focused enterprise risk management framework, comprehensive approval and monitoring practices for third-party originators, and detailed underwriting guidelines with manual reviews further contributed to its ranking. The company also benefits from an established information technology platform and utilizes third-party tools to ensure reliable origination of its loan products.
Read more: Lack of non-QM demand: “Big misconception”
DBRS noted that its RO2 rankings are not credit ratings and should not be considered a proxy of its creditworthiness. Rather they are designed to assess the quality of the parties that originate residential mortgage loans.
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