Down Payment Resource (DPR), the housing industry’s leading technology for connecting homebuyers with homebuyer assistance programs, today announced a new integration using the latest API framework from Intercontinental Exchange (ICE) for mortgage technology. Available via the Encompass Partner Connect™ API Platform, the integration makes it easier for lenders to support homebuyers with the nation’s 2,300-plus down payment assistance (DPA) programs.
Integration helps lenders make affordable home financing opportunities more accessible while growing business and forging referral partnerships
Down Payment Resource (DPR), the housing industry’s leading technology for connecting homebuyers with homebuyer assistance programs, today announced a new integration using the latest API framework from Intercontinental Exchange (ICE) for mortgage technology. Available via the Encompass Partner Connect™ API Platform, the integration makes it easier for lenders to support homebuyers with the nation’s 2,300-plus down payment assistance (DPA) programs.
DPR’s integration with Encompass embeds support for DPA programs directly into core loan production systems, arming lending staff with the information they need to confidently deliver DPA. Borrowers are automatically matched with eligible company approved DPA programs based on declarations and loan application data. LOs are presented with program information, such as benefit amounts and eligibility requirements, so they can advise borrowers on their DPA options and guide them through program-specific processes. DPA program selection is automatically communicated downstream to underwriters by translating program requirements into importable loan conditions, making them easier to manage.
Using DPA can lower the loan amount for a more favorable debt-to-income ratio or provide cash to meet the necessary cash-to-close, helping more low-to-moderate income (LMI) borrowers qualify for a mortgage. A study conducted by Down Payment Resource and the Urban Institute that examined the impact DPA could have had on buyers in the top 10 United States metropolitan statistical areas found that almost half (43.6%) of originated purchase mortgages were eligible for DPA. As far as loan types, 79.8% of FHA loans and 81.9% of USDA loans could have been eligible for DPA.
Moreover, the study found that DPA could have potentially salvaged 30.7% of denied applicants – a gap that affects a significant portion of LMI and minority applicants. Increasing pull-through not only benefits homebuyers, it also offers lenders a much-needed opportunity to grow loan volume in a tight market.
“DPA programs are crucial for promoting homeownership accessibility, particularly for first-time homebuyers, LMI homebuyers and homebuyers of color. Unfortunately, most loan officers don’t pursue DPA on behalf of their clients because they don’t know about existing programs or are hesitant to try something unfamiliar,” said Rob Chrane, founder and CEO of Down Payment Resource. “Embedding Down Payment Resource’s lender solutions in Encompass helps LOs overcome those apprehensions. Folding DPA functionality in the core origination gives LOs confidence that they can effectively originate DPA and make borrowers happy. We’re giving lending staff everything they need to know the moment a loan needs to be created.”
DPR maintains a comprehensive, up-to-date database of every DPA program in the nation. According to DPR’s Q1 2024 HPI report, there are 2,373 homebuyer assistance programs available nationwide. All 3,143 U.S. counties have at least one DPA program, more than 2,000 counties have 10 or more programs, and the average DPA benefit is $17,000.
“We hope that by making mortgage staff ‘instant experts’ on DPA, more homebuyers can benefit from DPA,” concluded Chrane.
For more information, visit the Down Payment Resource profile on the Marketplace™ by ICE Mortgage Technology® – https://marketplace.icemortgagetechnology.com/s/marketplaceprofileversion/aDe6g000000LQUfCAO/1566
Encompass Partner Connect enables the integration of key third-party products and services with ICE mortgage technology solutions. ICE does not own, control, nor endorse any specific industry participant or the product/service provided. Loan originators and servicers are responsible for vetting, selecting, and contracting with the providers of their choosing.
About Down Payment Resource:
Down Payment Resource (DPR) is the housing industry authority on homebuyer assistance program data and solutions. With a database that tracks more than 2,200 programs and toolsets for mortgage lenders, multiple listing services and API users, DPR helps housing professionals connect homebuyers with the assistance they need. DPR frequently lends its expertise to nonprofits, housing finance agencies, policymakers, government-sponsored enterprises and trade organizations seeking to improve housing affordability. Its technology is used by five of the top 10 retail mortgage lenders, three of the four largest real estate listing websites and 600,000 real estate agents.
For more information, visit https://downpaymentresource.com/.
Twitter: @DwnPmtResource #downpaymentassistance @ICEMortgageTech
Related link: https://www.downpaymentresource.com/
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