|
Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Biweekly Mortgages
Paying Twice In a Month
Although to some brokers biweekly mortgages are not as hot as they used to be when the loans were first introduced;
most brokers, lenders, analysts and non-mortgage product providers find customer demand for the product is still
strong.
Due to recent interest rate fluctuations, analysts say, flexible payment mortgages,
along with the not so new idea of biweekly mortgages, have come back into favor.
The biweekly mortgage marketplace has grown to serve a wide range of customers,
including subprime borrowers who were not targeted by the original developers of the product, which targeted good
credit customers only.
The marketplace is getting more and more competitive, inspiring providers to come
up with various business solutions. For instance, large banks like Countrywide have chosen to compete by avoiding
setup fees and charging as little as $2 for a payment draft.
Brokers like Bacon Mortgage of Richmond, Va. have established specialized for-profit
corporations designed to provide biweekly mortgages as an added broker service for a flat fee of up to $595, regardless
of loan amount.
LZL Equity Programs of Cincinnati on the other hand, was set up by a chemical
engineer who helps for a $2.50 withdrawal service fee and is looking to team up with brokers or lenders, even though
it has not ever before pursued this source seriously.
|
