Carrington Mortgage Services Introduces Closed-End Fixed-Rate Second Lien for Wholesale and Correspondent Lending

In a high-interest-rate market, Carrington Mortgage Services’ fixed-rate second lien product provides liquidity for homeowners through its Wholesale and Correspondent Lending channels.

ANAHEIM, Calif.--(BUSINESS WIRE)--Carrington Mortgage Services, LLC (CMS), one of the nation’s largest privately held non-bank lenders, boasts an impressive slate of loan offerings and services direct to consumers, investors, mortgage brokers and mortgage bankers nationwide. To add to its diverse non-QM lending offerings, CMS is introducing a Closed-End Fixed-Rate Second Lien product for its wholesale and correspondent lending customers.

Americans collectively held nearly $33 trillion in home equity as of the third quarter of 2023, according to the Federal Reserve. With this equity comes opportunity; but in a high-interest-rate environment, a second lien is a better option for many homeowners. The Closed-End Second Lien product enables brokers and sellers to have access to Carrington’s liquidity for their customers who have seen an increase in the value of their homes, and who now face a high-interest-rate market in which they may not benefit from replacing a low first-lien rate to obtain a cash out. The program is perfect for borrowers with traditional full documentation with verified tax transcripts, as well as borrowers with non-traditional income sources like self-employment or contract employment, who have the ability to qualify using their 12 most recent monthly bank statements. The diversity of the Closed-End Fixed-Rate Second Lien is impressive, and includes 5-, 10-, 15-, 20-, 25- and 30-year amortization schedules, as well as an interest-only option for the initial 36-month period for the 10-, 15-, 20-, 25- and 30-year loans. The product demonstrates the unique benefits of The Carrington Companies’ position as an asset manager, as well as its dedication to continually innovate as market conditions evolve.

“For homeowners, a second lien loan is a great option for paying off credit card debt, funding a home renovation or taking cash out for other needs,” said Greg Austin, EVP, Lending for CMS. “We believe brokers and sellers will welcome our Closed-End Second Lien product as another great addition to our offerings for these important CMS customers and the homeowners they serve.”

Without question, mortgage professionals are demanding, now more than ever, what Carrington has brought to the mortgage marketplace from the very beginning: innovative loan products, leading-edge technology, operations transparency and dedicated training and support systems for loan originators. And as an asset manager, with its liquidity and enviable access to capital, Carrington is able to provide mortgage brokers and correspondent sellers with diverse financing options for their self-employed, high-net-worth and real estate investor customers. Over time, CMS expects to increase emphasis and add resources to grow the non-QM business, ensuring it always provides peerless support for the third-party originators who bring their business to Carrington.

Diverse Solutions for Today’s Homebuyers

In addition to Carrington’s comprehensive suite of non-QM offerings, FHA, VA, USDA and conforming Conventional products, the company also offers ProcessIQ^SM, where approved CMS Wholesale brokers have the option of having Carrington process the loan as part of its underwriting. When enrolled brokers submit loans, they can request that the Carrington ProcessIQ team handle all non-licensable aspects of the processing, working directly with the borrower.

“Carrington is in a unique position to leverage its capital partner relationships and professional services to create winning solutions for mortgage brokers and their customers,” said Samuel Bjelac, SVP, National Sales, Third-Party Origination for CMS. “Our Closed-End Second Lien product is another example of CMS putting loan originators at the center of everything we do.”

The Carrington Companies

Carrington is a holding company whose primary businesses include asset management, mortgages and real estate transactions. Collectively, the businesses are vertically and horizontally integrated, and provide a broad range of real estate services encompassing nearly all aspects of single-family residential real estate transactions in the United States. To read more visit: www.carringtonhc.com.

Through its collective associates made up of Carrington leaders and employees, the company’s nonprofit organization, Carrington Charitable Foundation, contributes to the community through causes that reflect the interests of Carrington Associates. For more information about Carrington Charitable Foundation, and the organizations and programs it supports through specific fundraising efforts, please visit: carringtoncf.org.