New Penn Financial is expanding its use of technology that helps it buy home loans that don’t meet the Bureau of Consumer Financial Protection's "qualified-mortgage" standards.
The web-based tool, developed by financial-technology firm LoanScorecard, allows mortgage companies to quickly determine whether prospective borrower accounts would meet their underwriting standards. New Penn, which has been using the program internally, now is making it available to the corre-spondent lenders that originate the receivables it purchases.
The Plymouth Meeting, Pa., company is deploying LoanScorecard’s system, dubbed Portfolio Underwriter, in hopes of expanding its SMART Loan Services program, which targets borrowers with damaged credit.
LoanScorecard’s technology is being used in a similar way by New Penn rival Deephaven Mortgage, which last month introduced a web-based tool for mortgage brokers called Identi-Fi AUS.
In July, New Residential Investment acquired New Penn and its parent, Shellpoint Partners.