TUSTIN, Calif., Oct. 17, 2016 /PRNewswire/ -- New American Funding and Alterra Home Loans, two national mortgage banks, announced that Radian has been named as the preferred private mortgage insurance provider for Your Path, a new loan program that makes affordable homeownership opportunities available to the changing demographics of U.S. homebuyers by incorporating criteria not used in traditional underwriting.
"Radian is dedicated to educating prospective homebuyers on ways to achieve their dream, and we're thrilled to work with New American Funding and Alterra Home Loans to make that happen," said Teresa Bryce Bazemore, President, Radian Guaranty. "We continually strive to better understand and remove the barriers that prevent many potential homeowners from obtaining a mortgage. The Your Path program will help address some of those issues and serve as an important support to our ongoing efforts to make sustainable homeownership a reality for qualified borrowers who have limited down payment savings."
Radian helps borrowers who are not able to make a 20% down payment purchase a home by providing private mortgage insurance that helps protect lenders from default-related losses. In addition to playing that role for borrowers in the Your Path program, Radian will also work with the initiative's partners to educate consumers, create training programs for industry professionals and participate in training events for loan originators and operations staff.
"We're excited to be working with Radian on this program because it means we will be able to provide a greater pathway to homeownership for underserved borrowers," said Patty Arvielo, President of New American Funding.
"Our collective ability to demonstrate homeownership sustainably and responsible lending through this test and learn process could have great impact to how the industry lends as a whole. Working with the right partners on this is vital to its success, and Radian, as our preferred mortgage insurance provider on this, gets it," stated Jason Madiedo, CEO, Alterra Home Loans.
Your Path puts affordable homeownership within reach for more borrowers by taking into consideration a wider range of factors than traditional underwriting methods, including the needs of self-employed borrowers, seasonal employees, and multi-generational households.
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance, risk management products and real estate services to financial institutions.
ABOUT NEW AMERICAN FUNDING
New American Funding is a female-owned, Freddie Mac, Fannie Mae and Ginnie Mae Direct Seller/Servicer, FHA Direct Endorsement and VA Automatic mortgage lender with over 115 branch locations.
ABOUT ALTERRA HOME LOANS
Alterra Home Loans is a minority-owned, Nevada-based retail lender that provides mortgage loans and refinancing services to new and existing homeowners, and has offices in ten states.
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SOURCE New American Funding