Direct lenders may be key for mortgage loans

LOS ANGELES Ron and Lilian Inouye of Irvine needed to refinance their home loan and pay off a few bills, but despite having a good credit history they could not get a new loan.

"We went back to our original /*mortgage*/ broker who did our original loan. We went back to the company that currently services our loan, Wells Fargo Bank. Everybody turned us down," said Mr. Inouye.

The Inouyes pretty much lost all hope until a friend told them about a lender that is not a bank or a mortgage broker, but is approved to make loans directly through government funded FHA, Fannie Mae and Freddie Mac without restrictions.

"We're a direct lender, direct meaning we have our own warehouse facility to fund your loan so there's not necessarily," said Intercap Lending CEO Jamil Atcha. "You might go to a broker who has to go to a bank that is inundated and busy, so our time frame to closing a transaction usually can be done very quickly."

Atcha says they are one of just over a hundred such direct lenders in the country. And he says most direct lenders have more flexibility in taking on certain loans the banks may not touch. But before you apply for a loan through just any lender, direct or not, make sure they are an approved lender.

"We have to all get nationally registered now. Make sure they have what's called an NMLS number, the national mortgage loan registry system number. If they have an NMLS number, they're doing the right paper work," said Atcha.

To make the loan process go smoothly make sure you gather a few documents that you can submit with your loan application, such as: confirmation of your assets mortgage statement, if you have a loan now homeowner's insurance policy, W2 forms from 2008 and 2009 and most important, pay stubs from the past 30 days.

"Everybody has to show income. The days of the stated income loan are gone," said Atcha.

And that was just fine for the Inouyes.

"We are so blessed and we're so happy. It's like a miracle for us," said Mrs. Inouye.

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