MAXEX launches ESG programs for minority, women and veteran-owned lenders

Digital mortgage exchange and clearinghouse MAXEX has launched an environmental, social and corporate governance (ESG) business line and introduced its first two ESG programs designed to support the growth of minority, women and veteran-owned mortgage lenders.

In collaboration with J.P. Morgan, MAXEX reportedly will address the growing needs of lenders in underserved segments of the U.S. mortgage market by offering preferred loan pricing for qualified lenders through the ESG programs.

Under the partnership, J.P. Morgan has agreed to purchase and securitize certain qualifying loans to help generate more liquidity for the lenders and better access to home mortgages in critical, underserved segments of the housing market.

“MAXEX is ideally positioned to connect institutional investor demand for ESG-compliant loans with the needs of a diverse group of lenders. This socially responsible program will enable lenders that are uniquely positioned to reduce the cost of homeownership in underserved markets,” said Tom Pearce, chairman and CEO of MAXEX. “I am honored that MAXEX will be able to help level the playing field for minority, women and veteran mortgage business owners across the nation.”

As a digital buying and selling residential mortgage exchange facilitator through a single clearinghouse, MAXEX connects bank and non-bank lenders with investors including Wall Street banks, real estate investment trusts and insurance companies.

Together, MAXEX and J.P. Morgan will support minority, women and veteran-owned mortgage lenders through MAXEX Opportunity and MAXEX Opportunity Express to provide critical liquidity to these lenders.

J.P. Morgan will purchase qualifying loans, which ultimately generates more liquidity “and better access to home mortgages in a critical parts of the housing market,” the fintech said.  

The programs are:

  • MAXEX OpportunityMAXEX’s jumbo loan program, offers improved pricing to minority, women, and veteran-owned lenders and qualifying originators.
  • MAXEX Opportunity Express – offers these lenders enhanced pricing and reduced manual underwriting leveraging certain results from Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector Advisor.

MAXEX and J.P. Morgan also are in the process of jointly delivering additional socially responsible ESG loan programs through MAXEX next year. The fintech said it expects to launch a clean energy program in early 2021 “to facilitate lending for homes with renewable energy enhancements such as solar panels and geothermal units,” according to a company statement.

ATTOM: Grocery stores affect the U.S. housing market

Turns out, there is a close correlation between home values and their proximity to major grocery stores, according to the ATTOM Data Solutions 2020 Grocery Store Wars analysis. It shows that living near a Trader Joe’s, Whole Foods or “no frills” grocer ALDI store matters when it comes to home values.

The average home value near Trader Joe’s is $644,558, compared to $532,224 near Whole Foods and $250,850 near ALDI.

And according to the report, these findings are priceless feedback for homebuyers interested in assessing home price appreciation and home equity, as well as for “investors looking for the best home flipping returns” and home seller returns on investment.

ATTOM’s analysis and findings are based on current average home values, five-year home price appreciation from YTD 2020 compared to YTD 2015, current average home equity, home seller profits, and home flipping rates in U.S. zip codes with a least one Whole Foods store, one Trader Joe’s store and one ALDI store.

Homes realized an average 5-year home price appreciation of 35% near a Trader Joe’s; 33% near a Whole Foods; and up to 41% near an ALDI store.

In average home value Trader Joe’s leads for homebuyers at $644,558, and home equity earned by homeowners at an average of 37% ($255,066); followed by Whole Foods with 33% equity growth or ($191,380), while homeowners near ALDI saw a 26% increase or ($71,204).

Properties near an ALDI store are a good investment with an average gross flipping ROI of 58%, compared to 36% for properties near a Whole Foods and 30% near a Trader Joe’s.

The average home equity for all zip codes with these grocery stores nationwide is 29%. The average home seller ROI for all zip codes with these grocery stores nationwide is 43%.

Plaza Home introduces Agency Express loan program

San Diego, Calif.-based wholesale and correspondent lender Plaza Home Mortgage Inc. recently introduced Agency Express, a new conforming loan submission option that offers wholesale clients enhanced pricing for Fannie Mae and Freddie Mac loan programs.

Plaza designed Agency Express for borrowers qualifying with W-2 or fixed income, those who are purchasing or refinancing detached single-family residences (SFR) and planned unit development (PUD) properties.

The program is not available to self-employed borrowers, borrowers who have more than one financed property and certain types of properties.

In order to submit an Agency Express loan, all of the borrower’s income and asset documentation must be complete and included along with findings from Fannie Mae or Freddie Mac automated underwriting systems (AUS.)

Agency Express can be used for purchase, rate/term refis and cash-out refinances, as well as Conforming Balance and High Balance/Super Conforming loans.

The new Agency Express program will provide “our broker clients and a large subset of their customers with fast initial turn times and better pricing,” said Jeff Leinan, executive vice president of national wholesale production at Plaza Home Mortgage. “With closings in as little as 10-15 days, we are confident that this streamlined process will provide our brokers and their customers with an overall enhanced experience.”

Founded in 2000, Plaza Home Mortgage is a privately owned lender that offers multiple loan programs.

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