Plaza Home Mortgage Correspondent Case Studies Reveal Massive Savings on Certified Loan Program

Plaza Home Mortgage's Certified Loan Program protects their correspondent partners from loan manufacturing defects such as underwriting errors, fraud and misrepresentations, including defects from compliance, miscalculation of income, occupancy, undisclosed debts and appraisal issues. Plaza helps protect their correspondent lenders at no additional cost, thus substantially mitigating correspondent repurchase risk.

Plaza Home Mortgage’s Correspondent Lending Division provided case study data to display the dramatic savings that can be realized by being protected through their Certified Loan Program.
 
REPURCHASE CASE STUDY #1:

• $240K Note Loan Amount; LVT 80%, DTI – 31%, FICO – 680
• Reason for Repurchase: Current LP findings not verified; When re-run after closing: showed invalid, ineligible or incomplete findings.
• Borrower not qualified to refinance to avoid repurchase.
• Scratch & Dent Bid: $168k, $.70 on the dollar.

FINDINGS – CASE STUDY #1:

• Client avoided $64,536 in losses
  
• Breakdown of Associated Cost Before & After the Certified Loan Program Insurance
  

Calculating the Value of CLP Insurance (in bps) on a per loan basis – Spreading the savings in losses across each loan based on past total volume purchased up until the time of the client’s first insurance claim.

In this case, Plaza’s Certified Loan Program saves the client between $64,500 and $232,500 depending on the outcome.
 
REPURCHASE CASE STUDY #2

• Guideline Violation
  
• $482K Note Loan Amount; LTV – 99%, DTI – 49%, FICO – 626
• Reason for Repurchase: Insufficient VA guaranty fee
• Action Taken: Loan sold Scratch & Dent at 70%

In the case, Plaza’s Certified Loan Program helps the client avoid a total loss of over $118,000!

• To learn more about how Plaza’s Certified Loan Program can help protect your lending organization from unnecessary loan losses, contact Salpi Meyer to learn more.