Mortgage brokers across the country are being courted by a wholesale lender out of the Northeast that is promising to close their home-equity line-of-credit transactions in five days.
The stand-along product belongs to REMN Wholesale, which says it has a “never-ending, decades long, commitment of supporting the national mortgage broker community.”
According to the Iselin, New Jersey-based organization, the REMN 5 Day HELOC can be a first, second or third lien. A full draw is required at origination, while subsequent draws in $500 increments are available as the line is paid down.
Loan amounts go as high as $400,000, depending on the combined loan-to-value ratio and FICO score, while CLTV ratios are as high as 85 percent. The minimum loan amount is $15,000.
No co-borrowers are allowed, and only one borrower can apply. Debts cannot paid from loan proceeds in order to achieve an acceptable debt-to-income ratio, which is allowed up to 50 percent. No HELOC liens can be paid from the proceeds.
Loan terms are between five and 30 years.
The program does not require an in-person appraisal and instead utilizes an automated valuation model.
REMN Wholesale, which reports on LinkedIn that its staff exceeds a thousand people, originally announced its entry into the HELOC business in October 2017, when it partnered with TCF Bank to offer HELOC second liens to close concurrently with a broker-originated first mortgage. CLTV ratios on those transactions went up to 90 percent.