Anchor Loans launched a new Third-Party Originator channel that serves mortgage brokers, banks, private and non-QM lenders.
It provides residential business purpose loan products, including bridge, fix and flip, ground-up construction, and rental investor loans with debt service coverage ratio.
“Our new TPO program is designed to support and protect the strong relationships that exist between loan originators and their clients,” said Tim Landwehr, Co-Chief Revenue Officer at Anchor. He lead the design and launch of the new channel.
Home flipping remains at historic highs despite falling some in the last half of 2023. Investor profits are rebounding after a long run of declines, with raw profits increasing in Q3 last year.
“The comeback for the home-flipping industry is looking more like a real trend than a temporary break in what had been a pretty bleak couple of years,” Rob Barber, ATTOM CEO, said of the trend.
“For sure, investment returns still aren’t anywhere close to where they were a couple of years ago… Nevertheless, home flippers continue to head back in the right direction.”
Anchor CEO Rayman Mathoda said the company is focused on expanding its financing options at a time when many lenders are cutting back.
“We are at a moment in time when regional banks and private lenders are pulling back on financing options,” Mathoda said. “Our team remains deeply committed to expanding housing opportunities for America’s buyers and renters by providing investors with the capital necessary to refurbish our nation’s aging homes, and build new ones.”
How long flipping will stay dominant is up in the air. Investors have benefitted from home prices soaring thanks to ongoing stock shortages. Recent data suggests that some home sellers are starting to come off the sidelines, however, and builders continue churning out new construction. When inventory finally corrects, flippers may not pull the profits they are now.
Sustainable inventory is still a distant dream, however, giving investors plenty of reason to stay the course now.