October 19, 2010
NeighborWorks America and Direct Lending Family Launch New Online Mortgage Origination System, Bring National Pricing to Local Nonprofits
Washington, D.C. – NeighborWorks America, the nation’s premier community development intermediary and Direct Lending Family, a technology company committed to simplifying the mortgage origination process for nonprofit organizations, have teamed up to create NeighborWorks Mortgage Source, an online mortgage origination and pricing platform.
Direct Lending Family and NeighborWorks see this alliance as a national alternative to traditional local or regional lender options of most nonprofit mortgage originators. The national system reaches more than 100 lenders and state housing finance agency mortgage options giving consumers working with a nonprofit originator the greatest opportunity to obtain the best mortgage for their needs, no matter where they live.
“This is a fantastic development for nonprofit mortgage lending,” said Marietta Rodriguez, national director of homeownership and lending at NeighborWorks America. “By enabling NeighborWorks organizations to access the most diverse mortgage choices available around the country, we are able to help more homebuyers get the right mortgage for the long-term, at the best cost possible.”
While on the surface the Direct Lending platform appears similar to other multiple-lender internet services, Tammy Butler, CEO of Direct Lending Family says that conclusion is incorrect.
“The only similarity between NeighborWorks Mortgage Source and other online multiple-lender platforms is the fact that they are both online. Mortgage Source does not sell personal information to multiple lenders, does not let predatory mortgage products get into the system and provides the client with a complete and unbiased underwriting of their personal financial situation at a lower cost to the consumer than the national average.” said Butler.
Butler noted that NeighborWorks Mortgage Source is designed specifically to take into account during the underwriting process the possibility of multiple sources of cash to close, a typical situation when dealing with nonprofit mortgage originations which may see a homebuyer come to the table with funds from their own accounts and grants from as many as half a dozen other sources.
Importantly, homebuyers coming to NeighborWorks for mortgages go through its homeownership advisory services first, which in the past have shown to be very effective at lowering relative delinquency and foreclosure rates because of the NeighborWorks emphasis on obtaining the right loan at the right time and within the present budget.
“The homebuyers with whom NeighborWorks does business often are not traditional borrowers, but want traditional pricing,” said Rodriguez. “The flexibility of Direct Lending’s platform recognizes this and delivers for the many homebuyers that traditional underwriting overlook and who NeighborWorks helps achieve sustainable homeownership every day.”
Emery Federal Credit Union, Cincinnati works behind the scenes of NeighborWorks Mortgage Source. As the lender and fulfillment center for the mortgage loans, Emery funds and closes hundreds of millions of dollars in originations annually, making it a strong and vital partner in NeighborWorks Mortgage Source.
“We’re excited by the alliance with Direct Lending and NeighborWorks,” said Dennis Straw “Credit unions are nonprofit, community-based financial organizations and Emery’s participation in NeighborWorks Mortgage Source is an extension to the financial service we do already for employees of more than 260 companies.”
“With Mortgage Source, community-based organizations have access from their offices to a powerful mortgage origination tool. This is a tremendous advance for community development mortgage lending and an important tool for improving the sustainability of neighborhoods as we come out of this housing crisis,” said Rodriguez.
About NeighborWorks America
NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network â€• more than 235 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.