Company Touts Entry into Subprime Wholesale
Is a new company about to try its hand at subprime wholesale? According to a press statement today, it would appear so -- a Southfield, Mich.-based company by the name of Right Stop Mortgage LLC said Monday it would launch a subprime wholesale operation by the end of the month, using a net-branch model. The company's key anticipated offering is a no down-payment program for borrowers with a FICO down to 580; other programs will include stated-income loans for self-employed borrowers with just 5 percent down, the company said. Right Stop said in a press statement that it will initially offer its products through brokers in Arizona, Colorado, Florida, Nevada and Utah. "We will limit the number of mortgage brokers that we do business with and are very selective in our approval process," said Right Stop manager Bob Rubin. "Fraud is a very dirty word with us, and we are only looking for professional brokers who want to be in business for many years." The company will use fraud prevention services and require brokers to sign an acknowledgement that any fraud will be prosecuted to the highest degree -- although the company did not provide further details about its underwriting guidelines or fraud prevention practices. "Good people who will pay their mortgage on time are being lumped in with people who could care less about making their payments on time just because of their credit score," Rubin added. "We look hard to sift out good from the bad and are developing a new set of programs that can reach and help these people." Good luck.