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**UPDATE** Banco Popular Closing Wholesale Lending Unit

By
Mortgage and Lending with iBrandPlan.com - Grow your e-Profile & Brand

Banco Popular, the largest lender of ITIN loans has announced Tuesday they will no longer be making mortgage loans in the United States. As part of a restructuring effort, the Puerto Rican based bank is closing wholesale lending operations in January 2007.

I called my friend who owns a mortgage company that caters primarily to hispanic customers and asked his impression and it was news to him. He hasn't heard anything directly from Banco even though the announcement was made on Tuesday.

Brokers catering to the hispanic client will find this a blow to their mortgage lending program selection. Currently, Citibank through its retail lending channel is the largest source of financing ITIN lending available once Banco departs the market place.

 Ken Stampe

**UPDATE** - 1/12/2007 - it appears I overreached in my assumption that there was only one Banco Popular wholesale lending division as the on that is closing never had operations in Texas.

"I just heard from Carlos Sanchez, the owner and president of Maxima Financial, a mortgage brokerage firm in Dallas, TX who specializes in ITIN lending. Mr. Sanchez' email is included below:

"OK here is the scoop....

Banco Popular ITIN program actually represents a significant percentage of BPPR profits and not only they are not closing but they are rolling out more aggressive program I February.

BP does not have Sub-Prime wholesale program (non-ITIN) here in Texas but it does in other states, it is these operations they are closing. The division head is retiring and about 600 out of 2500 employees in the division are being offered severance packages.

From my experience with BP in PR, they will be either offer alternate jobs or a nice severance package.

Anyways, ITIN program is alive and growing.

Regards and thanks for the heads up!"

Carlos J Sanchez

President

Comments (9)

Ron Withers ----Retired Mortgage Professional
Kissimmee, FL

Ken,

2007 may be a record year for closings, bankrupties, sales of mortgage companies as well as a washout of some Loan Officer/Broker wannabees. Not to mention credit tightening and disappearance of some of the "exotic" mortgage loans.

Jan 11, 2007 09:27 AM
Blanca Cholewczynski
U - Oak Brook, IL
XCO

Hi Ken,

American Home Mortgage my parent home, offers ITIN loans in all 50 states. Your friend may want to try to find a Rep in his area to be able to get signed up with AHM.  We have as low as 3% down payment requirement and the rates are not that bad.   Banco Popular's rates where really high in comparison to AHM's.  If you need the name of a rep in your area send me an email and I can give you a few names in his/her area.  

Jan 11, 2007 10:13 AM
Ken Stampe
iBrandPlan.com - Grow your e-Profile & Brand - Dallas, TX
iBrandPlan

Blanca,

That's interesting that you brought it up. I was told that AHM was selling those loans in bulk to Banco Popular. If that's true, I wonder if that will still be available for AHM going forward.

Ron,

While I agree with you, Banco had long touted the performance of their portfolio. This was the first I had heard of anything regarding their portfolio's underperformance.

 

Ken

Jan 11, 2007 11:42 AM
Blanca Cholewczynski
U - Oak Brook, IL
XCO

That.... I didn't know Ken,  I have to check with my ITIN department.  I'll let you know

Jan 12, 2007 12:27 AM
Anonymous
Eliud Gautier

AHM has 100% financing through their ITIN Loan program with 45% DTI if full documented income is provided (monthly average of 2004 & 2005 tax returns).

You could add 25% undocumented income (from spouse or cash income) but the DTI lowers to 41% and the LTV goes to 97%.

But the major problem is not getting the loan product to the clients.  Eventually, this ITIN loan will be available through various financial institutions.  The major problem is home ownership education.

If you are serious about lending money or selling homes to this particular community - you have to have a support system that educates and provides continuous support during the first year for these buyers.  I have to admit that I am not there yet but I am in the process of setting this up for the geographic area I am working in right now.

I have one realtor that has had to help new ITIN home owners write their first mortgage payments because they have never written a check before this financial commitment.  So get ready become a full plus service lender and/or realtor if you are going to service this community, anything less is irresponsible.

Therefore even though this is a great niche for realtors and loan officers that are slowing down in transactions - you shouldn't enter this market thinking it is going to be the same as doing business with other first time home owners.  This is an entirely different community from all first time home owners you have worked with in the pass.

Eliud Gautier
ITIN Specialist
AHM Mortgage

Mar 05, 2007 02:53 AM
#5
Anonymous
John E.

ITIN Lending is such a controversial issue. I found a good site that covers the basics of this issue at: http://itinlending.net

 Check it out.

Mar 06, 2007 04:08 AM
#6
Anonymous
LINDA GONZALEZ
I have a question on non resident aliens with a ITIN Im having a hard time understanding a few things, ok  I know there is no problem getting them a loan, but my question is when we get to the part where we need to go the title co. and evereything has to be notirized my understanding is the individual needs a U.S ID and it cannot be done with just a mexican passport because the people im dealing with do not have a permit to work in the U.S they do show credit, they can show bank statment,proof of employment,tax returns etc..which is ok for the lender, but what about when it comes to the end when the documents need to be notorized?? Please respond (Im in the state of AZ)
Feb 14, 2008 04:13 AM
#7
Anonymous
Mauricio Acevedo
Hi linda i've been closing this kind of loans and non residents aliens must have a consular id, it is an id from mexican counsul, and it is a valid id, or a driver license, some people has it, dont ask me how, but some people has it.  good luck mr_itin_loans@yahoo. com     please tell me which bank are you using for itin loans.
Apr 07, 2008 01:56 PM
#8
Anonymous
Mortgage Lender

ATTENTION BEWARE WITH THIS WEBSITE http://itinlending.net SCAM TO CONTACT PHONE NUMBER DON'T APPLY, DON'T GIVE ANY INFORMATION AT THIS BULLSITE

Jun 11, 2008 06:18 AM
#9
Anonymous
Anonymous

Banco PoPular has closed, no ITIN loans available witht hem.

Nov 11, 2008 09:33 AM
#10