New offering launched in a bid to capitalize on booming home equity market
Verus Mortgage Capital (VMC) has rolled out a closed-end second-lien mortgage program that allows borrowers to tap into their home equity without impacting the interest rate on their first mortgage.
The non-QM correspondent investor said the new offering also aims to enable lenders to capitalize on the growing home equity market. According to ATTOM, nearly half of mortgaged residential properties are considered equity-rich.
"One of the ways Verus has established itself as the non-QM leader is by ensuring we consistently provide products that meet market needs," said VMC president Dane Smith. "Given the dynamics in the current housing market, now is a great time for originators to offer an attractive home equity product that gives borrowers access to funds so they may consolidate expenses."
VMC's second-lien mortgage option offers a fixed interest rate and monthly payment for primary residences and stand-alone transactions, with a maximum loan cap of up to $500,000. Other requirements include a CLTV of 90%, a minimum credit score of 680, and standard income documentation of two years.
Read more: Verus raises $606 million for non-QM securitization deal
Backed by investment firm Invictus Capital Partners, VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. The Washington, D.C.-headquartered company, with operations located in Minneapolis, has purchased over $22 billion in expanded, non-agency loans since its inception in 2015.
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