Rocket Pro TPO – the wholesale arm of Rocket Mortgage – made updates to its existing products to court more brokers.
Its ONE+ program – a conventional 1% down home loan program that launched in May – will include Freddie Mac‘s loan product advisor (LPA), which could translate to a 16% increase in client eligibility, Mike Fawaz, EVP of Rocket Pro TPO, said in a recorded video made public this week.
Under the ONE+ program, Rocket covers the remaining 2% needed to reach the required threshold for conventional loans for borrowers purchasing a single-family home and whose income is equal to or less than 80% of their area median income (AMI).
“We’re happy to bring more to clients with a purchase price under $100,000. Rather than a straight 2% down payment contribution from Rocket, we are now offering a $2,000 minimum incentive amount to eligible clients,” Fawaz said.
In addition, Rocket Pro TPO rolled out a new 1% loan level pricing adjustment (LLPA) credit for Fannie Mae HomeReady and Freddie Mac Home Possible loans at or below $350,000.
Eligible borrowers could now receive between $2,000 and $3,500 with no loan-to-value (LTV) minimum and no loan amount maximum, Fawaz noted.
The updated pricing framework for LLPAs which went into effect in May, waives LLPAs for Fannie Mae’s HomeReady and Freddie Mac‘s HomePossible loan borrowers.
Rocket Pro TPO is the second-largest wholesale lender in the country, according to data from Inside Mortgage Finance. This channel is the company’s conduit to brokers and historically a more potent source of purchase loans.
Parent entity Rocket Companies reported it produced $10.3 billion in volume through its TPO channel in the third quarter of 2023, up from $9.5 billion in the previous quarter.
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