Homecomings Financial Introduces Technology and Loan Program Enhancements; Enhancements Provide Mortgage Brokers with Better Options for More Borrowers

MINNEAPOLIS -- Homecomings Financial(SM) has announced significant enhancements to provide mortgage brokers with leading-edge technology to match their borrowers with the right loans. Additionally, several new products, including a 40-year Payment Option ARM, are now available to brokers.

"Our mortgage brokers will see major improvements to both technology and product programs," said Dan Bettenburg, managing director, Homecomings Financial Wholesale. "We developed these enhancements with our brokers' feedback and needs in mind to streamline their origination process through technology. We now provide an even more comprehensive product offering."

The enhancements include the following:

Multiple Product Options for the Borrower

Building on its premier technology platform, Homecomings Financial has launched Assetwise Direct(SM) 4.0. This new release enables brokers to compare multiple automated underwriting approvals, each with a lockable price, all with one submission. Brokers will receive a simultaneous Assetwise Direct approval with each Desktop Underwriter (DU(R)) approval obtained through Assetwise Direct, along with suggestions of loan types that might also provide a good match for the borrower. All of these suggestions can be submitted simultaneously for pricing so that brokers can help borrowers compare their options.

Steve Samuelson, president of Cypress Mortgage Group, Inc. in Concord, California, said, "I've been brokering for 15 years and have used all the major automated underwriting systems. Unlike other systems, which might only give you an indication that the loan will be approved, Assetwise Direct can give an approval on the spot. And now you can get multiple approvals. If we need to know for sure, we run it through Assetwise Direct."

Industry-Leading Use of Appraisal Waivers

Homecomings Financial is leading the industry in the use of automated valuation models (AVMs). Assetwise Direct 4.0 widens the availability of AVMs for certain Jumbo and Alt-A first mortgages. When an AVM is available, Assetwise Direct automatically generates a findings report waiving the appraisal requirement at no cost to the broker or the borrower.

"With a wider array of AVMs available through Assetwise Direct, our brokers can save the time and expense involved with conducting a traditional property appraisal and pass on those savings to the consumer," said Bettenburg. "Homecomings Financial is also introducing Property Inspection Waivers (PIWs) on certain conforming first mortgage loans. PIWs eliminate the need for an appraisal, again saving borrowers time and money."

GoFast New Process Option

GoFast is a new streamlined process, available through Assetwise Direct 4.0 and granted by DU, that eliminates income and asset verification requirements for eligible conforming borrowers.

James Dawes, managing partner, Cross Country Lenders in Seymour, Conn., said, "We have found that GoFast offers us lots of flexibility in serving our customers. It speeds up the whole process and yet has the same pricing as a fully documented loan. We expect it to have a profound effect on our business."

Bettenburg also highlighted significant improvements to Homecomings Financial's subprime program that simplifies grading and aligns product and pricing matrices. "We have restructured our subprime offering to make it easier for brokers to understand and help our customers grow their volume with our products," he said.

40-Year Product Borrowing Alternative

40-year mortgages are now available in several first mortgage loan programs, including Jumbo, Alt-A, subprime and Payment Option ARM (POA). The Jumbo, Alt-A and subprime programs offer a 40/30 balloon fixed rate and POA offers a 40-year ARM and a 40/30 balloon ARM.

James Waham, vice president of sales and operations at Premier Lending, Inc. in Bellevue, Wash., said, "The 40-year options offer borrowers the choice of a lower payment while still accomplishing principal reduction on the loan. It is an effective alternative to an interest only loan for borrowers who want a more affordable payment but also want an amortizing loan."

About Homecomings Financial

Homecomings Financial (www.hfwholesale.com) is dedicated to building successful broker partnerships by delivering the best combination of exceptional customer service, leading-edge technology and comprehensive loan programs. The company serves over 5,000 mortgage brokers across the United States with wholesale funding solutions. Homecomings Financial is a business unit within Residential Capital Corporation's U.S.

Residential Finance Group. Residential Capital Corporation is a leading real estate finance company, focused primarily on the residential real estate market in the United States, Canada, Europe and Latin America. Our diversified businesses - GMAC-RFC, GMAC Mortgage, ditech.com, GMAC Real Estate, GMAC-RFC Securities, GMAC Bank, and Homecomings Financial - cover the spectrum of the U.S. residential finance industry, from origination and servicing of mortgage loans through their securitization on the secondary market. It also provides capital to other originators of mortgage loans, residential real estate developers, resort and timeshare developers and healthcare companies. ResCap is an indirect wholly owned subsidiary of General Motors Acceptance Corporation (GMAC). For more information about ResCap, visit https://www.rescapholdings.com.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.