Why Now?
Why Now?
We know the impact that COVID-19 is having on our country, and we believe that this is just the beginning of a surge of loan requests for hard money/soft money loan programs. To give originators more control, you can now log into the portal, add your loans, upload documents, receive conditions, send messages, send emails, add support cases, and keep control over your deal.
We've lowered our pricing as low as possible, and since hard money/soft money loans cannot be sold in the secondary market, the total fee will be shared between Capella Mortgage and the mortgage broker submitting the loan.
How will I get paid?
Believe it or not, the law is much more strict on owner occupied higher priced mortgage loans and high cost loans than it is on traditional Fannie/Freddie/FHA loans. Fees are capped, balloons are prohibited on high cost loans, and late fees are less than the normal. There is no default interest allowed, and loans must conform to the FFIEC rules.
Additionally, the fees are ALWAYS borrower paid. There is no such thing as a rebate or selling the loan above par and getting servicing release premium. Capella Mortgage must keep these loans on the books for as long as the customer has the loan outstanding. For owner occupants, that means a minimum of 61 months, and sometimes, 84, 120, or 180 months, depending on the debt ratios. Private investors don't like to tie their funds up that long, especially since owner occupied interest rates are usually capped at APOR + 6.5%.
So, once your loan has closed, the escrow company will remit the amount of your commission to your broker. Only licensed originators can submit loans and discuss rate, term, and fee with the borrowers. The commission split between your broker and Capella Mortgage is 33.33% to your broker and 66.66% to Capella Mortgage.
You cannot charge a processing fee, an underwriting fee, or any other fee, unless it is a valid third party fee like credit report fees, appraisals, and loan set up fees. Once you sign into the portal, you will be able to see your specific commission structure based on your user level.
what types of deals do you do?
If you make sure that your deal fits the following guidelines, then you can be pretty sure it is going to pass the first review.
1. Is it real estate?
2. Is their considerable equity? Owner occupied purchases cannot exceed 80% LTV, and owner occupied refinances cannot exceed 70% LTV. Investment property fix and flip loans cannot exceed 100% of the purchase price, and borrowers must have sufficient reserves to repair the property and make the payments.
3. Are their tax liens against the borrower? If yes, there must be a seasoned payment plan in place with proof of compliance.
4. Is the credit score at least 500? If there is no credit score, because the borrower doesn't use credit, that is acceptable if there are other methods of proving payments being made on time.
What is my user level?
LEVEL I ORIGINATOR
LEVEL III ORIGINATOR
LEVEL II ORIGINATOR
A Level 1 originator has closed 5 or less hard money loans with Capella Mortgage. They do not have access to the Email Marketing features of the portal and have limited access to other portal features.
LEVEL II ORIGINATOR
LEVEL III ORIGINATOR
LEVEL II ORIGINATOR
A Level II originator has closed 5 or more loans with Capella Mortage. They have full use of the portal and all of its features. They can only see their own deals.
LEVEL III ORIGINATOR
LEVEL III ORIGINATOR
LEVEL III ORIGINATOR
A Level III originator is reserved for the broker of your mortgage company. This level can see all of the hard money loans for all of it's own originators and has access to advanced features.