Carrington Mortgage Services’ Second Lien product provides a welcome source of liquidity to existing CMS servicing customers in a rising-interest-rate market
Recently, Carrington Mortgage Services, LLC (CMS) introduced a Second Lien program that offers a unique opportunity for Carrington homeowners. The Second Lien product provides a welcome source of liquidity to existing CMS servicing customers who have seen an increase in the value of their homes and now face a rising-interest-rate market in which they may not see a benefit accessing their home equity by replacing a low first-lien rate to obtain a cash out. The program demonstrates the unique benefits of The Carrington Companies’ position as an asset manager, as well as its dedication to continually innovate as market conditions change. Specially trained loan officers are presenting the Second Lien product exclusively to CMS homeowners in all states where CMS operates – with the exception of Texas, Maryland and North Dakota.
“This initiative required close coordination between divisions across Carrington, including asset management; legal; compliance; regulatory; and CMS lending, servicing and marketing”
“Our expertise allowed us to put the entire product platform together in just 45 days,” says Andrew Taffet, Chief Investment Officer for The Carrington Companies, who says the Second Lien product is specifically designed to retain business by offering existing Carrington homeowners more flexibility. “This initiative required close coordination between divisions across Carrington, including asset management; legal; compliance; regulatory; and CMS lending, servicing and marketing,” Taffet said. “It’s a solid demonstration of how Carrington can quickly adapt to changing market environments and demonstrate agility in delivering a new product to our homeowners and investment partners.”
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CMS has analyzed its loan portfolio to identify loans that qualify for the Second Lien product, and loan officers are reaching out to eligible Carrington homeowners to let them know it is available. The company is also sending direct marketing to these customers and, if interested, potential borrowers can call CMS or submit an application online. The product has enormous potential for Carrington homeowners who have experienced appreciation in the value of their homes; and it sets the company apart from competing lenders. High-interest revolving debt is at an all-time high in the United States; and so, too, is home equity. Many Carrington homeowners don’t want to give up their low-interest-rate first loans to access home equity to pay off existing debt.
“For these homeowners, a Second Lien loan is a great option for paying off credit card debt, funding a home renovation or taking cash out for other needs,” says Kirk Gerling, SVP, National Retail Sales for CMS. “We believe our homeowners who need a cash out loan will see value in our Second Lien product.”
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The Carrington Companies
Carrington is a holding company whose primary businesses include asset management, mortgages and real estate transactions. Collectively, the businesses are vertically and horizontally integrated, and provide a broad range of real estate services encompassing nearly all aspects of single family residential real estate transactions in the United States.
Through its collective associates made up of Carrington leaders and employees, the company’s nonprofit organization, Carrington Charitable Foundation, contributes to the community through causes that reflect the interests of Carrington Associates.
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