Follow Patrick Linkedin Facebook
Email Patrick Email
Financial
Nov 1, 2014

Wall Street Poised To Renovate Mortgage Industry

Sponsored Content provided by Patrick Stoy - Mortgage Consultant/Owner, Market Consulting Mortgage

With traditional banks pulling back from the mortgage industry in the wake of legal woes, revised banking standards and constant scrutiny, nonbank lenders are recognizing the opportunity. In fact, nearly a quarter of the loans that were processed in the first half of 2014 were made by nonbank lenders, according to Inside Mortgage Finance.

This is incredibly good news for many consumers, who were prevented in many cases from obtaining a loan by oppressive regulations and complex requirements. Now that Wall Street is back in the game and willing to show off a little American ingenuity, the result is an unprecedented opportunity for investors.

In the past, it was only permissible for an individual to have loans for 10 investment properties. It was not uncommon for me to hear from people who had worked extremely hard to build a substantial base of equity in their properties, yet the amount of cash flow they had coming in was sub-par and they no longer had an effective means of building wealth, since the banks wouldn’t lend them any more money.

Enter nonbank lenders and Wall Street to the scene, and what you have is a creative solution to a problem that has been around for quite a while. Simply put, this is a brand new product that is certain to have far-reaching implications.
It is now possible to bundle investment properties into one single portfolio, a personal Real Estate Investment Trust. There is no longer a limit to how many investment properties you can own. All properties and existing loans can be refinanced into one loan, allowing investors to expand their holdings, cash out equity and bring additional funds into the monthly coffer.

The best thing about these loans is that the personal financial situation of the investor is not under scrutiny. Yes, you read that right – the personal financial situation of the investor is not a factor.

Instead the value of the properties is used as collateral in securing the debt. What this means is a great deal more flexibility in acquiring financing and perhaps less of a need to sift through mountains of personal financial data, go on scavenger hunts for more information, jump through hoops, produce hair follicles or provide blood samples.

Since these loans are essentially considered commercial loans, the guidelines are not as strict and the regulations are not as stringent as with residential loans. Lenders are looking for places to put their money, and this provides investors with a pathway for purchasing additional properties and simplifying their lives by rolling numerous loans into one portfolio loan.

Many of these products are adjustable rate mortgages, with competitive rates and 30-year amortizations. The loan-to-value ratio can be up to 75 percent and the origination fees typically vary.
If you are interested in how this could apply to your unique financial situation, contact me by phone or through email and I’ll be happy to go over things with you. I enjoy helping people create effective strategies for building wealth and ensuring their dollar is working as hard for them as possible.

Patrick Stoy has 15 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.

Other Posts from Patrick Stoy

Mcm 14jan insight
Ico insights

INSIGHTS

SPONSORS' CONTENT
Davidmcgowanapi300x300

2017: Energy in the Spotlight

David McGowan, III - N.C. Petroleum Council; American Petroleum Institute-NC
Karagansmanncshlaw300x300

As Options Increase for Senior Housing, Rely on a Geriatric Care Manager

Kara Gansmann - Cranfill Sumner & Hartzog LLP
Chadwoutersheadshot

Don't Miss Out on this Year-End Tax Strategy

Chad Wouters - Earney & Company, LLP

Trending News

Builders: Vibrant Local Housing Market Could Face Struggles

Cece Nunn - Dec 15, 2017

Company Lands $225M In Road Contracts, Including Military Cutoff Extension

Cece Nunn - Dec 14, 2017

Mortgage Firm To Open Wilmington Office

Cece Nunn - Dec 15, 2017

New Hanover County Sues Opioid Manufacturers, Distributors

Christina Haley O'Neal - Dec 15, 2017

The Top Stories Of 2017

Staff Reports - Dec 15, 2017

In The Current Issue

2017 Top Stories: No. 10 - ILM Announces Third Carrier To Lineup

2017 Year in Review: Cape Fear Community College experienced upheaval once again this year in its top leadership position....


2017 Top Stories: No. 8 - Golf Championship Tees Off Marketing

2017 Year in Review: The eyes of the golfing world turned to Wilmington in May during the Wells Fargo Championship golf tournament held at E...


Info Junkie: Taylor Oldroyd

Info Junkie Taylor Oldroyd, CEO of Cape Fear Realtors, on his reading and tech picks....

Book On Business

The 2017 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2017 Health Care Heroes
Major Developments
WilmingtonBiz Expo - Key Note Lunch with Keynote Lunch with Chip Mahan - 2016