Following a review by HUD, ""Chicago Bancorp"":http://www.chicagobancorp.com/, an independent mortgage bank based in Chicago, will be permitted to underwrite and close mortgage loans without prior ""HUD"":http://portal.hud.gov/portal/page/portal/HUD review, according to an announcement Monday by the bank.[IMAGE] [COLUMN_BREAK]
Participation in the Direct Endorsement Program ""is a privilege accorded only to mortgagees who continue to demonstrate the ability to originate mortgage loans in according with HUD underwriting policy,"" the federal agency said. To qualify, lenders must be able to demonstrate a history of conducting business ""in accordance with sound lending ethics and standards.""
Stephen M. Calk, founder, chairman, and CEO of Chicago Bancorp, believes receiving this Direct-Endorsement designation will give the bank the ability to serve prospective borrowers at a quicker rate and a lower cost.
""Among other things, the designation allows us to grant low-cost Federal Housing Administration mortgage insurance to creditworthy homebuyers who nevertheless might not be able to meet conventional underwriting requirements,"" Calk said.