Interfirst launches a product focused on non-proprietary lending


“One,” Interfirst’s new program for non-owner mortgages, aims to keep things simple, ”said Chief Strategy Officer Brian Filkie.

“This has been my philosophy ever since I started looking at the difference between iPhone and Android,” Filky said. “I don’t give a damn about anything Android can do for me. I don’t have time to figure this out, ”he added, noting that he still has a one-button iPhone.

Mortgage brokers should strive for this simplicity when dealing with borrowers, he said.

“If their experience is difficult, you’re not as good at your job as you think,” Filky said. “And so I took the liberty of saying, can I translate this vision of simplicity into the private market, while still maintaining the sound rules and risk parameters that we want as an organization?”

In response to this question, the company developed One, which uses the property’s debt coverage ratio as an underwriting parameter. There is a flat rate with no price adjustments.

“So instead of going through the manuals and matrix and then figuring out the price list, you [as a loan officer] just know if my borrower is inside these walls between this floor and ceiling in terms of the matrix, I just need to know that this rate will be x and then you can sell x all day, ”Filky said.

Interfirst will provide a loan of up to $ 2 million with an 80% loan-to-value ratio for purchase and refinancing at rate and maturity and 75% for cash out.

One of them is the first in a series of unqualified mortgage products from Independence, which will be launched this year. This is a natural progression after the company introduced the right to participate in the agency and Prime jumbo According to him, last year mortgage products.

Restrictions imposed by former Federal Housing Finance Agency director Mark Calabria investor loan purchase by Fannie Mae and Freddie Mac Back in January, an opportunity arose in this segment of the market, ”said Filki. And he’s not worried about Calabria’s temporary replacement, Sandra Thompson, potentially reverse course about these changes.

The Calabrian restrictions have added about $ 50 billion in loans to the $ 30 billion business line, making it a much broader and more attractive world, Filke said. With an estimated 24 million private homes in the United States spanning one to four apartments, “this is a huge market.”

Even if these restrictions are partially or completely removed, government-funded enterprises still have in their underwriting criteria a price adjustment at the loan level for riskier loans. As a result, “the entire market segment is shifting towards private execution, even for loans that meet agency criteria,” Filky said.

Interfirst will securitize loans made through Product One and will offer it to mortgage brokers as well as through its direct channel to consumers.

Interfirst is waiting to see what happens with the changes in qualified mortgage rule before launching other products in the Independence series. There is currently a delay in compulsory compliance with the new standard introduced by former Director of Consumer Financial Protection Katie Kraniger.

“So we are waiting to see how this clears up … but we expect we will have a solution for sole traders and an alternative solution with full documentation, but probably next year if we do not get significant clarity from FHFA , CFPB and Fannie and Freddie around the world. Finalized the rules, “said Filkie.

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