Crestmark Mortgage remains strong because we have a different business model...

The U.S. mortgage market has experienced some tumultuous times since March, 2007. This is the result of the investors in mortgage-backed securities for certain loans having severely decreased or ceased operations completely. Looking back, this began when Wall Street investment firms created a market for investors in certain loan products known as sub-prime loans. These loans allowed borrowers the opportunity for homeownership by qualifying with no money down, low credit scores and without verifying income or employment. However, due to unemployment and frequently adjusting increase in payment amounts, a high number of borrowers who obtained an Alt-A/Sub-prime mortgage loan (non-agency loans) began defaulting on these loans leading to today’s industry crisis. Many if not all investors in mortgage-backed securities stopped buying these sub –prime loans. This has forces many lenders to become insolvent.

Crestmark Mortgage remains strong because we have a different business model than the Alt-A/sub-prime lenders. Crestmark closes loans with a committed approval and then sells directly to the lenders/investors. With access to more than 100 national lending sources, we have lenders competing for our business and are therefore able to offer competitive prices and a wide array of loan products. Cornerstone Mortgage Company, one of the Crestmark partners, has a solid foundation and a management team that has successfully guided the company through four major industry corrections.

We are hopeful that this mortgage industry adjustment will last 60-90 days as the industry transitions back to traditional financing. Conventional products and bond programs are still available at very attractive rates, and as a correspondent lender, Crestmark/Cornerstone is able to tailor a loan program to fit each buyer’s individual needs.

Today the homebuyer should know the status of their credit, their credit score and be prepared to make at least a 3% down payment. To avoid complications at closing, the buyer should research about the ability of the lender to perform.