Mortgage

Sprout Mortgage resumes correspondent lending

Company continues to reintroduce products after freeze in March

Sprout Mortgage announced Tuesday it is resuming its correspondent lending operations, effective immediately. The company credits improvements to the secondary market over the last six weeks, permitting more origination activity and the correspondent channel relaunch.

Initially, the correspondent channel will feature four loan programs including-

  • J10 – Select Jumbo Full Doc – For income documented with pay stubs and tax returns, up to $4 million, maximum 85% LTV
  • A10 – Select Bank Statement or 1099 – For self-employed borrowers, up to $4 million, maximum 85% LTV
  • A11 – Select Asset Optimizer – For high net-worth borrowers, up to $4 million, maximum 80% LTV
  • I10 – Inve$tor Debt Service Coverage – For one to four unit investment properties, up to $2.5 million, maximum 70% LTV

“Our Select and Inve$tor programs, a team of experienced account executives, and Sprout’s powerful, easy-to-use technology all combine to let our clients deliver the right mortgage to each of their borrowers,” said Shea Pallante, Sprout’s chief production officer.

In late March, Sprout announced it was suspending the funding of loans until April 1, however, it was not until the beginning of May that Sprout would break its non-QM lending freeze.

After reopening activity, the company launched four non-QM programs in late May. By the end of June Sprout announced enhancements to those same programs including-

  • A new maximum 85% LTV on most loan programs
  • Reduced rates across the entire program offering
  • Increased maximum Loan Amounts at lower Loan-to-Value levels on the Select program series

“While our loan programs have been re-engineered for today’s markets, our commitment to make non-QM mortgages easy and convenient for our clients remains a top priority for Sprout,” said Michael Strauss, Sprout’s president.

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