|By Marketwired .||
|March 18, 2014 01:05 AM EDT||
MIAMI, FL -- (Marketwired) -- 03/18/14 -- For decades, banks such as Goldman Sachs Group, Bank of America, Morgan Stanley, and Ally Financial have been selling mortgage-servicing rights. But now new restrictions from Washington, including rules prescribing how mortgage servicers interact with borrowers and how capital costs for servicing loans can be raised, are pushing banks out of the mortgage business in an effort to take some of the risks attached to it out of the banking system. As a result the handling of customers' loans by companies such as hedge funds and nonbank financial firms is expected to increase. Risks aside, the mortgage business can be really lucrative, mainly due to fees collected from mortgage owners for handling billing and payment collection. On top of that nonbank companies are not subject to the same capital rules and oversight, which allows them to simplify and streamline the process.
Given the new "Qualified Mortgage" rules, which make it tougher for many people to obtain a mortgage, there is a growing need of competent companies that can help hopeful house buyers in figuring out their options to finance their dream -- a business opportunity that experienced entrepreneurs such as Matt Argall are ready to jump on. The new rules, which took effect on January 10th this year, aim to prevent giving high-risk loans to financially unstable borrowers in an effort to avoid another crisis on the real estate market. In order to be considered "qualified" under the new rules, the applicant must have a steady, provable income history, good credit, and not too much debt. There are, however, lenders out there who are giving non-QM loans, for example interest-only loans, which do not require the borrower to make principal payments until a predetermined number of years have passed. Finding non-QM offers in the current market is not easy though, which is where mortgage companies come into play.
Matt Argall already has an in-house mortgage team and is now looking into the option of offering more extensive services to help customers finance their real estate purchases. According to the Mortgage Bankers Association, there is a growing demand on the market with U.S. mortgage applications rising by 9.4 percent last week as interest rates slipped, based on a survey by the MBA which covers over 75 percent of U.S. retail residential mortgage applications. In order to obtain a loan, borrowers need to go through a lengthy and complicated application process where the help of professional mortgage companies comes in handy, that can give advice from examining the financial situation to picking the right mortgage program and submitting the application.
Matt Argall is an enthusiastic entrepreneur who dived into the business world at the age of 17 when he helped his best friend at the time to save a big online company that sold wholesale products online. He went on to apply his marketing skills working for MCI Inc. before he founded his own company. One of his first businesses served the gas and electricity industry, where he employed 100 people in call centers in the United States and another 400 overseas, in the Philippines. Many other companies followed after that. Matt never has limited himself to one industry. Lately, he has been looking into opportunities in the water filtration, greeting cards, supplements, and, most recently mortgage industries.
Matt Argall News: http://www.mattargallnews.com
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