In this era of the Dodd-Frank Act of 2010 and mortgage lending reform, many trust deed brokers, investors and indeed the general population are uncertain over the future of trust deed investments on loans secured by personal residences and what these new lending laws will do to mortgage lending in general. Indeed, most media reports and other descriptions of the new Dodd-Frank laws are filled with negative news making it sound as though the entire $14 trillion US mortgage industry will come to a halt.
The mortgage lending industry is certainly changing drastically in both residential consumer-purpose loans as well as in commercial or business-purpose loans, Val-Chris Investments, Inc., who has been in the trust deed investment business for more than 35 years , has steadily chartered a safe course through the byzantine rules of mortgage lending as it has changed over the years and this time it is no different. Val-Chris has studied the Dodd-Frank rules and made the investment in time to set up its loan programs and its servicing to comply with the new Dodd-Frank rules and we believe we can operate within them and do so while making it profitable for both brokers and investors.
We believe there are great opportunities in trust deed investments based on consumer-purpose owner-occupied loans secured by a borrower’s primary residence. And Val-Chris will continue to originate these loans throughout California in 2014.
For brokers, this means that Val-Chris can provide the guidance and know-how to allow brokers to secure these types of loans for their clients who perhaps did not qualify for such a loan with a conventional lender. While interest rates for these loans are higher than conventional lender rates, we are still competitive and we can close these loans more quickly than most all of our competitors. We urge brokers to contact us at Val-Chris so we can show you how to take advantage of our consumer loan program and how we can make this work for you efficiently.
For investors, the new Dodd-Frank mortgage reform laws do increase the potential legal liability to investors who own them, but an offsetting benefit to owning these loans is that they are underwritten more thoroughly (these are full document loans where the borrower must illustrate an ability-to-pay and debt-to-income ratios are imposed), loan-to-value ratios are generally lower, and borrowers must utilize an impound account for insurance and property taxes, to name a few. These beneficial factors combined with Val-Chris’ underwriting methods generally will provide a net benefit to owning these types of trust deed investments making them worthy of your investment consideration. We invite you to inquire about this new loan program and allow us to provide you with more information.
Lastly, Val-Chris provides no-nonsense and efficient qualifying for all of its loans programs throughout California on residential properties, owner occupied or not, as well as most commercial or business-purpose loans. We invite you to call us and inquire about the specifics of our new consumer loan program or visit www.val-chris.com and allow us to serve your needs as a broker and/or an investor.
Thank you.