Homeownership Potential

We are hearing so much about homeownership these days. We have seen many potential buyer’s be held back by the accepted industry standards for qualifying for a mortgage. Over the past several months there’s been quite a bit about changes that might allow many to qualify. I ran across this article in The MReport that explores one more lender moving into the non-prime space.

Unlocking Homeownership Potential

Rick Sharga, EVP, Carrington Mortgage Holdings, recently spoke to MReport about how Carrington’s non-prime products are helping underserved borrowers achieve their dream of homeownership. He also discussed the key factors that differentiate these products from subprime loans issued prior to the Great Recession.

M // Carrington recently announced it was expanding into the non-prime space. What was the push behind this decision?

Sharga // There’s a huge underserved market of potential homebuyers who are locked out of the market due to the risk aversion seen from most lenders since the Great Recession. An Urban Institute study suggests that between 2009 and 2016 the number of such borrowers could have been as high as 6.3 million. These are people who might have a FICO score that’s blemished or a higher debt-to-income ratio than current lending practices allow. Many have historically proven to be credit-worthy and can often sustain their homeownership.

There’s a great underserved market that deserves a chance at homeownership or to be able to tap into their home equity to better their life situation. We were well-suited to fill that need because we have been a leader in serving the underserved market with government loans. Our origination platform has the skill set needed to work with this set of borrowers and help them achieve or sustain the dream of homeownership.

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