Membership Central


Financing Hefty Homes

The ICBA Mortgage program now offers a jumbo-loan financing option

By Howard Schneider

Resurging real-estate markets around the country are prompting more community banks to re-emphasize home lending. Recently, ICBA Mortgage expanded its product menu to help community banks meet more of their customers’ needs—including often their most profitable ones.

Secondary market “jumbo” mortgages—home loans too large to be sold to Fannie Mae or Freddie Mac—now are available to community banks through the ICBA Mortgage program, ICBA Mortgage Solutions Powered by LenderLive. Through this program, community banks can offer borrowers 30- and 15-year fixed-rate secondary market loans—as well as 5/1 and 7/1 adjustable-rate terms on secondary market home loans—as large as $2 million.

ICBA Mortgage—Your Mortgage Center

ICBA Mortgage Solutions Powered by LenderLive is an exclusive Correspondent Lending Program designed to support community banks concerned with balance sheet risk, as well as regulatory and compliance challenges. Banks can choose a delegated or non-delegated correspondent relationship.

ICBA Mortgage Solutions provides personalized service and a simple process enhanced with superior technology—all designed to help you serve more customers and grow your mortgage business. Benefits include:

  • Co-branded servicing;
  • Fast-track program for quick lender approval process;
  • Non-competing secondary market investor; and
  • Broad product offerings conventional, government and jumbo products.

For more information, visit

Providing such fixed-rate jumbo financing is particularly attractive with today’s low interest rates. For that reason alone, jumbo loan financing has “attracted attention” from numerous community banks, notes Ron Haynie, ICBA’s senior vice president for mortgage finance policy and executive vice president of ICBA Mortgage.

ICBA Mortgage Solutions program provides a community bank–friendly solution to access competitive loan products, optional processing and underwriting assistance, plus loan servicing. National mortgage services provider LenderLive Network Inc. in Denver powers the ICBA Mortgage Solutions loan product menu.

Through the LenderLive Network, the ICBA Mortgage program will continue adding to its secondary market product line, including conventional conforming and Federal Housing Administration–backed mortgages. Veterans Administration–guaranteed mortgages also are being incorporated into the ICBA Mortgage product offerings, Haynie says. Mortgages and construction-to-permanent loans backed by the U.S. Department of Agriculture are also scheduled to be added to the ICBA Mortgage program in the future, he adds.

Various delivery options are available to community banks using the ICBA Mortgage program, which allows banks to perform their own underwriting. Community banks that already deliver to multiple investors typically have the processing and underwriting staff needed for this choice, points out David Vida, president of loan servicing and chief strategy officer at LenderLive.

Another option allows community banks to have ICBA Mortgage Solutions review their loan packages and apply conditions prior to funding. All loans made through the program are in the originating bank’s name before final review and servicing-released purchase by LenderLive.

The program also provides community banks fast-track approval and quick turn-around on loan decisions with LenderLive.

Getting approved to sell loans to ICBA Mortgage Solutions is a fast process, and gives community banks access to LenderLive’s products and services. Community banks that don’t want credit risk can take loan applications, issue disclosures and do the processing. Underwriting and final approval then is performed by LenderLive.

Community banks that have sales staff but don’t want to allocate additional resources into mortgage processing and compliance can simply take an application and have LenderLive perform all the back-office functions. This approach can be particularly helpful with mortgage products a bank originates infrequently.

Haynie points out that community banks can offer jumbo mortgages through the ICBA Mortgage program without hiring and training the additional staff necessary for meeting today’s regulatory requirements. Through ICBA Mortgage, community banks “can outsource and still be profitable” while providing a full menu of mortgage products, he says.

Howard Schneider is a financial writer in California.