If you’re having a tough time getting financing using a mortgage broker or a local lender, consider contacting a portfolio lender directly to close your mortgage.
Some of the largest portfolio lenders include Countrywide, Washington Mutual, and Wells Fargo.
Portfolio lenders essentially have their own portfolio of loan products that they offer, and sometimes re-sell through smaller lenders.
However, smaller lenders aren’t able to bend the rules like the portfolio lenders are, as they aren’t the ones that ultimately service the loans.
By servicing the loans themselves, portfolio lenders are able to take on greater amounts of risk, or finance loans that are outside the box because they don’t need to be resold to investors with specific standards.
That’s why you might hear that a friend or family member was able to get their mortgage refinanced with Countrywide or a similar portfolio lender despite having a low credit score or a high loan-to-value. These companies actually bend the rules when they see a deal worth doing.
Small and mid-size lenders don’t have the same authority because they must sell their loans off on the secondary mortgage market, which is becoming increasingly selective as to which loans are actually purchased.