No Overlays at CrossCountry Mortgage

Hi, Bruce Woodburn here with CrossCountry Mortgage and WDBO radio on Saturdays from noon to one. I wanted to give you an update as to what I’m seeing in the market right now. For all my real estate agents out there that are truly taking the business seriously, you are busier than ever and I am absolutely impressed. I’m also a little bit amazed that there is so much business activity going on in the purchase market. We knew that lenders would be busy with refinances because interest rates are so low, but who would have known that our purchase business would explode. I’m seeing some real estate agents setting absolute record numbers in their purchases. However, I’m also seeing that there is a pain point that we’re dealing with and that pain point is that a lot of the lenders out there have instilled additional overlays over and above Fannie Mae, Freddie Mac, HUD or VA guidelines.

Now, exactly what is an overlay? An overlay is an additional restriction to mitigate risk, so that the lender does not put themselves out there too far. When things are changing, like we have gone through with the Coronavirus, then we can find that many people may lose their jobs or may be making less money. If that happens post-closing, it does put the lender in a little bit more of a risky situation. The last thing a lender wants to do is go to closing, and then two weeks later, somebody gets laid off and they can’t make their payments. That’s not good for anyone. So, let’s let’s talk a little bit about how we can deal with that situation.

First of all, I want you to hear these words: at CrossCountry Mortgage, I DO NOT HAVE LENDER OVERLAYS, with the exception of a couple of minor ones on mobile homes, but that’s it. Any overlays, or any changes in guidelines are directly from Fannie Mae, Freddie Mac or HUD. Meaning, that I follow HUD guidelines and I follow Fannie Mae guidelines. We don’t layer on our own risk factors on top of it to make it more difficult for you or your clients. Can I still do loans on FHA in the 580 range? Absolutely I can, as a matter of fact, I’m saving several builder deals and several other transactions that have gone to other lenders that they just can’t do. So, you can align yourself with a lender that can only do some of your transactions, or you can align yourself with a lender like me. If I can’t do the deal, it can’t be done.

I’m going to tell you something, if you send me a transaction, I’ll tell you whether that deal is going to close or whether it’s not. I don’t have overlays and I’m closing loans in 21 days. If you have a client that’s been requested for extensions, it’s unacceptable. Do not accept an offer with greater than a 15-day loan commitment. If the loan can’t be committed in 15 days, you either have an issue with the borrower, maybe the borrower is not providing the documentation, or the lender did not ask enough hard questions to begin with, and might not even know their own company guidelines. Don’t put your client through that process, call me 407-230-6599, or 407-250-9144 or at my office at 407-869-8830. You can also apply online at WeBringYouHome.com.

Please don’t put your transaction at risk by dealing with lenders that don’t even know their own underwriting guidelines as they’ve changed during this Coronavirus Pandemic. Come right to the source. I’ll get your loans done for you and I’ll close them quickly. If you know any other real estate agent, builders or clients that you’re struggling with to get loans approved, pick up the phone and give me a call. I’ll bend over backwards to make sure we get your transaction closed smoothly and on time. If you have any friends or family that have not refinanced yet, I’m telling you, do it now. As the market starts to improve on the stock market, rates are starting to go back up a little bit and I don’t anticipate that they’re going to stay this low for very much longer. They’re great right now so let’s help some folks get refinanced into a better rate or get rid of PMI or pay off debt. I look forward to hearing from you real soon. And thanks again for your support loyalty and I’m always there for you. Have a great day.

4 Comments. Leave new

  • Marie Parsons
    April 14, 2021 2:10 am

    Hello, do you work with the state of Georgia?

  • Hello. My 1% of student loans on my DTI ratio stopped me from getting a pre approval from another lender. Do you have this overlay?

  • My credit is good but my DTI is high due to arrears and my spouse’s income can offset DTI by her credit score is below 580 can you help???

  • Are you still able to do no overlays in FL? Running into backend DTI issues with current rates


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