RFC competes to buy mortgages that span the breadth of the U.S. lending market. Their jumbo program covers fully documented first mortgages made to borrowers with strong credit profiles in amounts from $300,701 to over $1 million. Expanded Criteria is RFC’s brand name for a range of programs that allow borrowers with good credit to obtain loans with alternative documentation or loans on unusual properties. These can include everything from a loan for which the borrower’s income and assets are not verified to a loan on a condo-tel at a ski resort. Credit Gap and AlterNet are RFC’s brand names for programs that allow borrowers with marginal or poor credit to obtain first mortgages to purchase or refinance their homes. These programs also allow great flexibility in the range of documentation required for a borrower to obtain a mortgage.
RFC also competes to buy home equity lines, home equity loans and second mortgages with a maximum loan-to-value ratio of 125%. These products also provide borrowers with a range of documentation and repayment options.
AssetWise is a proprietary system through which customers can underwrite the loans they are originating to sell to RFC. By submitting a borrower’s application data through AssetWise, an RFC customer can receive a purchase decision, credit report and detailed findings report within a matter of minutes. If the loan is approved by AssetWise, this information empowers the lender to close the loan using far less documentation than is normally required. An AssetWise approval also relieves the lender of the normal legal representations and warranties it provides to RFC concerning the quality of the loan and the manner in which it was underwritten and closed. Because RFC’s system underwrote and accepted the loan, RFC accepts the credit and default risks.
