Carrington Mortgage Services Introduces Section 184 Loans for Native Americans
2024年7月11日 - 7:00PM
ビジネスワイヤ(英語)
Carrington Mortgage Services’ Section 184 loans
are a great option for Native American homeowners
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. As part of its
ongoing commitment to serve diverse homeowners, and to provide a
needed offering for an often-overlooked homeowner audience, CMS is
introducing Section 184 Loans for Native Americans for its retail
lending customers.
“The Section 184 Loan is a great product, in part because the
costs are low when compared to other loan programs,” said Greg
Austin, EVP, Lending for CMS. “They're becoming more and more
popular as Native Americans realize there’s a specific product out
there designed for them – especially on tribal land.”
How does the Section 184 program work?
The Section 184 Loan Guarantee Program was created by the U.S.
Department of Housing and Urban Development’s (HUD) Housing and
Community Development Act of 1992 to address the lack of mortgage
lending for Native Americans and Alaskan Native tribal members.
According to HUD, Section 184 loans are available to American
Indians or Alaska Natives who are enrolled members of a federally
recognized Tribe, Alaska Village or Regional Corporation. These
home loans are guaranteed 100% by the Office of Loan Guarantee
within HUD’s Office of Native American Programs to encourage
lenders like CMS to provide mortgage loans to Native Americans. For
a home loan on tribal trust land, eligible borrowers lease the land
from the tribe for 50 years. Currently, Section 184 home mortgage
loans are fully available in 24 states, including Oklahoma,
Arizona, Colorado, Kansas, New Mexico and Utah. In 14 states,
including Texas, New York and Connecticut, the loans are only
available in certain counties and cities.
The advantages of a Section 184 Loan
Loans offered through this program require a low minimum down
payment – generally 2.25%, or as low as 1.25% for loans of less
than $50,000. In addition, the program utilizes a hands-on approach
to underwriting and approval, as opposed to using automated
decision-making tools. For loans closed on or after July 1, 2023,
there is no longer an Annual Loan Guarantee Fee. Section 184 loans
can only be used for single-family homes (1-4 units) and for a
primary residence.
“In certain cases, Native American homeowners may use gift funds
or benefit from approved closing cost assistance programs,” said
Austin. “This program can really help a qualifying customer
purchase or refinance a home more easily. It is important that
Native Americans have equal access to the American dream of
homeownership; and at Carrington, we are proud to help these
deserving homeowners find a great home using a program created for
their unique needs.”
Diverse Solutions for Today’s Homebuyers
Without question, homeowners and 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. In
addition to Carrington’s comprehensive suite of non-QM offerings,
FHA, VA, USDA and conforming Conventional products, the company
also offers ProcessIQ℠, 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. In
December 2022, CMS’ Second Lien program began providing a welcome
source of liquidity to existing CMS servicing customers. In July
2023, CMS expanded its offerings to include 40-year loans and
temporary buydowns. In March 2024, CMS introduced a Closed-End
Fixed-Rate Second Lien product for its wholesale and correspondent
lending customers. And in early April 2024, CMS introduced ITIN
loans through its retail, wholesale and correspondent lending
channels.
The Carrington Companies
Carrington is a holding company whose primary businesses include
asset management, mortgages and real estate transactions.
Collectively, the businesses are fully 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.
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Edward Pittman 214.533.6741 pr@carringtonmh.com