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Carrington Launches ‘Non-Prime’ Lending Program

Carrington Mortgage Services, based in Plano, Texas, has expanded its residential mortgage offerings to make access to home loans a greater possibility for the roughly 100 million U.S. consumers who have less than perfect credit. The introduction of its proprietary, non-prime loan products is the next step in Carrington's ongoing focus to help underserved borrowers purchase or refinance a home. The move also underscores Carrington's confidence and track record of success in working with this segment of the population that has a difficult time qualifying for a loan in today's tight credit market.

According to Experian's eighth annual State of Credit survey, 21.2 percent of Americans have credit scores below 600. For these consumers, especially in today's risk-averse lending environment, access to appropriate financing options can be a challenge. Carrington has developed the expertise to qualify creditworthy borrowers with less-than-perfect credit, originate quality loans and service them.

‟For years, we've built our business around serving underserved borrowers–those with credit scores or life's events that make it difficult for them to get a mortgage or refinance loan," said Ray Brousseau, President of Carrington Mortgage Services. ‟Because we manually underwrite each loan, we're able to analyze an individual's personal history, recognize their needs and responsibly lend to them. Our clients, Realtor and broker partners bring us their challenging loans because they know that we know how to work with these borrowers to help them get their loans and keep them in their homes."

Payment history is one of the most important factors affecting a person's credit score and their ability to get a mortgage or refinance a loan. Experian reports that one in four adults do not always pay their bills on time. A missed payment is the single biggest indicator of credit risk and has the greatest impact on an individual's credit and ability to secure a loan.

"That's where we come in," Brousseau added. "Not all mortgage companies have the ability to offer loan products in a responsible way to those who don't fit into the traditional lending environment, and we don't want to see a return to the kind of careless lending practices that led to the foreclosure crisis back in 2008. Carrington is an expert in underwriting and servicing challenging loans. We are one of the very few lenders nationally that can truly assist borrowers with low FICO scores and keep their loans performing at a high level."

Carrington's new non-agency loan products is an ideal solution for consumers with lower credit scores, high debt-to-income ratios, who are self-employed, or who have had a recent credit event–such as foreclosure, bankruptcy, missed credit card, or late mortgage payment–and may not be eligible for conventional or government loan products.

Carrington also recently lowered its minimum FICO score requirement to 500 for FHA and VA loans to provide the widest possible range of opportunities to help underserved borrowers more easily become homeowners.

"We'd like to be the lender of choice for otherwise qualified borrowers who have less than perfect credit scores, and for the real estate agents and mortgage brokers who work with them," Brousseau continues. "We believe there are millions of Americans who historically would have been able to qualify for a loan, but simply haven't been able to get one since the Great Recession. And we believe they deserve a chance to achieve the dream of homeownership."

About Author: David Wharton

David Wharton, Editor-in-Chief at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has nearly 20 years' experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. He can be reached at [email protected].

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