[Gustan Cho]

For National Faith Homebuyers’ DPA, you generally need to be mortgage-qualified for a loan that allows secondary financing, keep your monthly mortgage payment at or below 31% of your household’s gross monthly income, complete the required homebuyer education, and have at least $1,000 of your own funds. You also must be buying a home in one of the eligible cities they fund, and the property must meet Housing Quality Standards.

Where to apply

You can apply through National Faith Homebuyers’ down payment applications page, but only after you meet the eligibility requirements and have an accepted purchase agreement on a property in an eligible city. They say you should submit the contact form on that page and their downpayment department will respond within 24–48 hours.

How to start

National Faith says you can call their Detroit office at (313) 255-9500 or Atlanta office at (678) 553-3770, or use the contact form on their DPA page to begin.

Important details

Their site lists eligible cities as changing based on availability, and it includes places such as Livonia, Westland, Lincoln Park, and several Wayne County communities. The program page also notes the Wayne County DPA loan is a fixed $13,999 for existing homes and is forgivable after five years at 0% interest.

If you want, I can also help you figure out whether your income, credit, and target city likely fit the program before you apply.

nationalfaith.org

Down Payment Assistance Program | National Faith Homebuyers

Down Payment Loan | Forgivable After 5 Years | 0% Interest | Partnered with Michigan State Housing Development Authority | Contact for More Information

[Gustan Cho]

Mortgage lenders and loan originators are optimistic about 2026, seeing it as a promising year. However, this outlook depends on the performance of specific mortgage market segments.

Industry Sentiment and Volume Projections

Mortgage professionals expect 2026 to outperform recent years. The National Mortgage News Predictions 2026 survey shows most lenders are optimistic and foresee higher mortgage volumes. Among loan officers surveyed, 85% predict increased originations, with 44% expecting growth of more than 10%. 62% anticipate a moderate increase, while 15% expect a substantial rise.

Origination Volume Forecasts

Major industry associations forecast growth in total origination volume.

• Fannie Mae projects a 2026 origination volume of $2.4 trillion, up from $1.94 trillion in 2025.
• The Mortgage Bankers Association anticipates an 8% increase in total single-family mortgage origination volume in 2026, reaching $2.2 trillion.
• Emergent reports a nearly 10% increase in U.S. mortgage loan origination volume in 2026.
• Agencies cite various factors, but the following aspects are most notable.

1. Refinancings: The share of originated loans that are refinanced is expected to reach 38% in 2026, up from 29% in 2025 and 21% in 2024.
2. Specifically, the Mortgage Bankers Association forecasts a refinancing volume of $737 billion.
3. Home Equity Loans: This segment is expected to grow significantly.
4. Decline in Interest Rates: Lower mortgage rates are expected to drive higher originations.
5. An unnamed loan officer predicted, “By the 3rd quarter of 2026, we will start seeing home sales increase, and mortgage rates decrease.”
6. Growth in the Non-Qualified Mortgage (Non-QM) Market:

Non-qualified mortgages (Non-QM) remain a strong segment of the market:

• In 2025, Non-QM loans accounted for over 10% of total mortgage applications for the first time, establishing a new record.
• By 2026, the Non-QM sector is projected to reach a market share in the low teens.
• Originators are increasingly comfortable with these loans, and this trend is expected to continue despite market changes.

Industry Challenges: Despite Optimism, The Industry Continues To Face Several Challenges That Require Attention:

1. Housing Affordability: High home prices were identified by 43% of loan officers as the most significant obstacle for homebuyers in 2026, while an additional 31% cited challenges in saving for down payments.
2. Inventory Constraints: Housing shortages persist, especially in entry-level and mid-tier markets.
3. Demographic Disparities: Some analysts see first-time homebuyers as having the most growth potential, while others expect limited growth, especially among low- and moderate-income families.
4. Economic Uncertainty: Ongoing inflation and potential economic weakness remain concerns that could negatively affect loan performance.
5. Regional Variation: Respondents’ expectations for demand in 2026 vary by location, but most anticipate increases.
6. The most optimistic projections highlight refinancing and home equity lending in 2026, especially if interest rates fall.
7. These trends may help the mortgage industry address ongoing inventory and affordability challenges.
8. After several challenging years, these forecasts suggest that 2026 could be a period of growth and positive change.

[Gustan Cho]

One of my friends and former business colleague who used to work at NEXA and now works for a different mortgage brokerage did a price comparison on rates between NEXA and the other mortgage brokerage. They are on a 250 compensation plan with the wholesale lender. At NEXA we are at 2.75% yield spread compensation plan. When comparing rates, NEXA’s rates were lower than the other brokerage even though our comp plan at NEXA was higher. I heared that NEXA has volume preferred pricing versus other mortgage brokerage.

https://gustancho.com/yield-spread-premium/

gustancho.com

Yield Spread Premium Charged By Mortgage Brokers

The maximum Yield Spread Premium mortgage brokers can make is 2.75% whereas mortgage bankers are exempt and have no cap

[Gustan Cho]

Punch the Orphan Baby Monkey: A Case Study in Macaque Recovery and Social Integration

In July 2025, a Japanese macaque was born at Ichikawa City Zoo, weighing 500 grams. His mother abandoned him shortly after birth. Two zookeepers became Punch’s guardian, his mother, his playmate, his caregiver.

Newborn macaques typically cling to their mothers for warmth, safety, and development, but Punch did not receive this care.

Zookeeper Kosuke Shikano explained that clinging to their mothers helps infant macaques build muscle strength and confidence. Without maternal contact, Punch sought other sources of comfort.

A Difficult Birth and a Mother’s Rejection

Zookeepers monitored the troop, hoping another female would adopt Punch, as sometimes happens in macaques. When this did not occur, the staff took responsibility for his care. Keepers Kosuke Shikano and Shumpei Miyakoshi provided continuous support to meet all of Punch’s needs. Maternal care is essential for macaque survival and learning. With dedicated intervention and a suitable substitute, Punch began to recover and develop.

The Search for Comfort: Enter the Stuffed Orangutan

Without maternal care, Punch showed anxiety and restlessness. Rolled towels offered little comfort, but introducing a soft IKEA Djungelskog orangutan toy brought immediate relief.

Punch quickly formed a strong attachment to the toy, often cuddling and carrying it, which supported his emotional stability.

According to the zoo, “Providing a stuffed toy and towels to hold onto not only stimulates clinging to a mother but also prevents excessive dependence on humans.” Zookeeper Kosuke Shikano noted that the toy’s long hair and shape made it especially suitable. The staff named the toy “Ora-mama,” meaning Orangutan-mama.

A Viral Sensation and a Global Outpouring of Support

Images and videos of Punch with his orange plush companion quickly gained widespread attention online. The hashtag #HangInTherePunch trended internationally as people expressed support for his recovery.

Punch’s story drew many visitors to Ichikawa City Zoo and support from around the world. In February 2026, IKEA donated additional stuffed toys and supplies.

The zoo declined celebrity offers to adopt Punch, focusing on his integration with other macaques. Despite these efforts, Punch sometimes faced exclusion or aggression from the troop and sought comfort from his stuffed companion. These experiences, captured on video, contributed to his social learning. While he made progress, Punch continued to struggle with integration and remained most attached to the zookeepers and his IKEA toy. During feeding times, he often sought reassurance by holding onto his caretaker’s legs.

A Breakthrough: Finding Friends and a Place in the Troop

In early 2026, after a gradual reintroduction in January, Punch began forming social bonds with other macaques. A key milestone was recorded when another macaque groomed Punch’s fur, signaling group acceptance. He was also seen riding on another macaque’s back and playing with other juveniles, indicating increased social integration.

Primate expert Matt Lovatt stated, “It’s been great to see him starting to groom, because that’s the key way these primates can start to build up friendships with the monkeys within the group.”

Punch still seeks comfort from his stuffed orangutan during anxious moments, though his dependence is gradually decreasing. The zoo remains optimistic about his social integration. Punch’s experience shows that resilience, dedicated care, and external support can help overcome early adversity.

1 Citations

Abandoned monkey at zoo near Tokyo finds comfort in stuffed animal, creates buzz – The Mainichi
https://mainichi.jp/english/articles/20260217/p2a/00m/0li/008000c

mainichi.jp

Abandoned monkey at zoo near Tokyo finds comfort in stuffed animal, creates buzz - The Mainichi

ICHIKAWA, Chiba -- A Japanese macaque at a zoo here who was abandoned by his mother has found comfort in a stuffed animal, and many people both on- an

[Gustan Cho]

I have many friends at other mortgage broker companies. I know close friends and business associates who work at C2 Financial, Barrett Financial Group, and Loan Factory. I have been at NEXA Lending since February 2022 and the company has gotten larger and organized. I can compare from what I know and understand between NEXA and Loan Factory. There is no company that is better than the other. You need to weigh the pros and cons. One thing about NEXA is they offer residual income through revenue share. NEXA allows you to have your own P and L. It also allows your mortgage net branch to operate under your own DBA. The comp plan is 2.75%

Case Scenarios For Mortgage Net Branch Production

One of the most important questions for a mortgage net branch owner is not just which company offers the better headline compensation plan, but which company leaves more real revenue in the branch after company deductions and staffing costs. For branch managers comparing NEXA and Loan Factory, the answer depends on how compensation is structured, what the company charges per file, and whether the branch uses its own staff or relies on company-provided support.

First Case Scenario NEXA Lending

• For this case-scenario comparison, assume a mortgage net branch is averaging $300,000 per loan and is using its own in-house processor at both companies.
• In this example, the processor earns $120,000 per year, which creates a fixed branch expense of $10,000 per month.
• These examples focus on gross branch revenue after company compensation structure and processor cost, but before other business expenses such as loan officer splits, branch manager overrides, marketing, licensing, CRM, office overhead, virtual assistants, or loan officer assistant payroll.
• At NEXA, the branch is operating on a 275-basis-point broker compensation plan with wholesale lenders.
• NEXA takes 25 basis points from the top and another 30, leaving the branch with a net of 220 basis points.
• Because the $2 million threshold applies to each individual loan officer, not to the branch’s total production, these scenarios assume the branch remains at a flat 220 basis points.
• On a $300,000 loan, that equals $6,600 in branch revenue per file before processor cost.

First Case Scenario Loan Factory

• At Loan Factory, the compensation plan in this scenario is 250 basis points.
• Loan Factory pays 100 percent compensation, but charges $595 per file.
• Since this comparison assumes the branch is using its own processor, the Loan Factory company processor fee and optional LOA fee are not included here.
• On a $300,000 loan, 250 basis points equals $7,500 gross revenue, and after the $595 company fee, the branch is left with $6,905 per file before processor cost.

Case Scenario of Closing 5 Loans Per Month

• If the branch closes 5 loans per month at NEXA, that equals $ 1.5 million in monthly production.
• At 220 basis points, the branch generates $33,000 in monthly revenue.
• After deducting the processor’s salary cost of $10,000 per month, the branch is left with $23,000 per month before any other expenses.
• At Loan Factory, the same 5 loans would generate $34,525 per month after the company’s $595 per-file fee.
• After paying the same processor salary, the branch would be left with $24,525 per month.
• In this lower-production example, Loan Factory leaves the branch with $1,525 more per month than NEXA.

Case Scenario of Closing 6 Loans Per Month

• If the branch closes 6 loans per month, monthly production rises to $1,800,000.
• At NEXA, 220 basis points produces $39,600 in monthly branch revenue.
• After paying the processor, the branch is left with $29,600 per month.
• At Loan Factory, 6 loans produce $41,430 per month after company fees.
• After deducting the processor’s salary, the branch is left with $31,430 per month.
• At this level, Loan Factory leaves the branch with $1,830 more per month than NEXA.

Case Scenario of Closing 7 Loans Per Month

• If the branch closes 7 loans per month, total monthly production reaches $2,100,000.
• Even though the branch volume exceeds $2 million, the branch still remains at 220 basis points in this scenario because the threshold applies to each individual loan officer, not to the branch’s total volume.
• At NEXA, 7 loans generate $46,200 in monthly revenue.
• After deducting the processor’s salary, the branch is left with $36,200 per month.
• At Loan Factory, 7 loans generate $48,335 in monthly revenue after company fees.
• After paying the processor, the branch is left with $38,335 per month.
• At this level, Loan Factory leaves the branch with $2,135 more per month than NEXA.

Case Scenario of Closing 10 Loans Per Month

• If the branch closes 10 loans per month, monthly production reaches $3,000,000.
• At NEXA, the branch generates $66,000 per month at a 220-basis-point spread.
• After paying the processor salary, the branch is left with $56,000 per month.
• At Loan Factory, the same production level generates $69,050 per month after company charges.
• After paying the processor, the branch is left with $59,050 per month.
• At this level, Loan Factory leaves the branch with $3,050 more per month than NEXA.

Case Scenario of Closing 20 Loans Per Month

• If the branch closes 20 loans per month, monthly production rises to $6,000,000.
• At NEXA, the branch generates $132,000 per month at a 220-basis-point spread.
• After paying the processor salary, the branch is left with $122,000 per month.
• At Loan Factory, 20 loans generate $138,100 per month after company fees.
• After deducting the processor cost, the branch is left with $128,100 per month.
• At this production level, Loan Factory leaves the branch with $6,100 more per month than NEXA.

Case Scenario of Closing 30 Loans Per Month

• If the branch closes 30 loans per month, total production rises to $9,000,000.
• At NEXA, the branch generates $198,000 per month.
• After paying the processor salary, the branch is left with $188,000 per month.
• At Loan Factory, 30 loans generate $207,150 in monthly revenue after company fees.
• After paying the processor, the branch is left with $197,150 per month.
• At this level, Loan Factory leaves the branch with $9,150 more per month than NEXA.

These case scenarios show that when NEXA is modeled at a flat 220 basis points, and Loan Factory is modeled at 250 basis points minus $595 per file, Loan Factory produces more branch revenue in every production example shown, assuming the branch uses its own processor at both companies. The difference is modest at lower monthly volume, but it becomes more noticeable as production increases. That is because, on a $300,000 average loan size, Loan Factory’s effective revenue per loan remains higher than NEXA’s flat 220 basis point structure.

From a pure branch-revenue standpoint, Loan Factory appears stronger under these assumptions. However, compensation math is only one part of the decision for a mortgage net branch owner.

• A branch manager also needs to consider whether the company allows a DBA, how much branding control the branch has, whether the company supports the branch’s staffing model, how easy it is to recruit and retain loan officers, how compliance is handled, and whether the overall platform helps or limits long-term growth.
• In other words, the company with the stronger per-loan revenue is not always automatically the better strategic fit.

For a branch owner comparing NEXA and Loan Factory, these case scenarios are most useful as a starting point. They show what the branch may keep under a specific production model, but they should be paired with a broader review of operational flexibility, team structure, and the branch’s long-term goals before making a final decision. Another note is you need to deduct the 12% or 10% employer matching tax at both companies for w2 wage earners.

[Gustan Cho]

Begin your path to mortgage approval by addressing major negative marks on your credit. Next, open three or four new credit accounts and manage them responsibly. This guide offers easy steps, card recommendations, and tools to help boost your score.

Key rules lenders care about:

• Maintaining on-time payments over the past 12 months is critical.
• Recent late payments have a greater negative impact than older charge-offs.
• Perfect credit is not required, nor is payment of every collection account.
• The objective is to present a credit profile that automated or manual underwriting will assess as an acceptable risk.
• Most agency loans use a “representative” score (the middle of three scores, or the lower of two) and do not require a minimum score for computer approvals.
• Manual reviews usually need a score of 620 or higher, and some established credit accounts.

Core rebuild plan (works for most borrowers):Follow these steps unless your situation requires a different order.Have 3–4 primary tradelines reporting

• Try to get three secured credit cards, each with a $300 to $500 deposit.
• These cards will help you build stronger credit.
• If you can, add an installment account, such as a credit builder loan, self-lender product, or small personal loan, as long as your debt is not too high for your income.

Use your secured credit cards in the following ways:

• • Keep each card’s balance between 10 and 30 percent of its limit. Let one or two cards show a small balance, and keep another card at or near zero.
  • This approach gives your credit score the best chance to improve.
  • Give your credit score time to reflect your positive habits.
  • With three secured cards and a few months of careful use, you can often turn a denial into an approval from the automated system.
  • A full year of on-time payments can make your application stand out for manual review.
  • Be cautious with credit score booster tools.
  • Use them only if they fit your needs.
  • You can add phone bills, streaming bills, and sometimes rent to Experian for free, which might raise your Experian FICO score a little.
  • Don’t rely only on booster tools, because many lenders check more than just Experian scores.

Scenario 1: Borrowers with outstanding collections and charge‑offs

• Key point: You usually do not have to pay off most collections to get an FHA, VA, USDA, or Conventional loan unless they turn into a judgment, lien, or make your debt too high compared to your income.
• Paying off all collections at once can actually lower your score by making old negative items look recent.

Step 1. Stop the bleeding

• Ensure there are no recent 30/60/90‑day lates on open accounts.
• Prioritize bringing any delinquent revolving accounts or auto loans current.

Step 2. Triage collections

• Unless guidelines or overlays require it, old small medical collections can be ignored.
• For big, recent non-medical collections that could turn into a judgment,
• try to settle them one at a time with written agreements.
• This helps avoid all accounts updating in the same month, and causing your score to drop for a short time.

Step 3. Avoid disputes before the mortgage

• Take off any credit bureau disputes as your lender tells you before your loan is reviewed, especially on non-medical accounts.
• Disputes can hide your real credit scores and affect computer loan decisions.

Step 4. Build new credit

• Even if you have collections, open three secured credit cards and keep balances low.
• Building fresh, positive credit history will do more for you in the long run than just cleaning up old negatives.
• If you don’t have any open credit accounts, start by opening three secured credit cards with $300 limits.
• Pick cards from major banks, not store cards, and avoid those with high fees.
• Make sure the cards report to all three credit bureaus

Optional: Add a Credit Builder Loan

A small loan with automatic payments for 12 to 24 months can improve your credit mix and show you pay on time

• Use and Wait.
• Six months of steady, on-time payments will raise your score and give the automated system a good track record to review.

Scenario 3: Open Derogatory Accounts

Profile: The borrower has no active positive accounts, only closed or potentially charged-off accounts.

Steps to Follow:

• Old Closed Charge-Offs Remain
• Undisturbed Without Cause
• Paying off old negative accounts can make them appear recent, which may temporarily lower your credit score.

Look to closed accounts for judgments and make settlements.

• Get 3 Secured Cards + 1 Builder Line
• Aim for three secured cards and consider adding a credit builder loan.
• As you add new positive activity, your credit will gradually shift from mostly negative to a healthier mix that improves your score.

Scenario 4: Borrowers with Delinquencies on Open Accounts

Recent late payments are a major reason for receiving a ‘Refer’ or ‘Caution’ result in computer loan reviews.

Steps to Follow:

• Bring Everything Current
• Avoid new late payments. Keep in mind that opening a new account might lower your score and could even make a collection account disappear from your report.
• Let Time Pass: The Late Will Age
• Generally, underwriters require 12 months of clean activity to assess the post-late period.
• Pay Down Credit Cards
• Keep your credit card balances below 30% of their limits to give your score the biggest boost.

Goodwill If Applicable

• A goodwill letter lets you explain a one-time late payment, such as one caused by a hospital stay.
• It might help, but don’t rely on it as your main strategy.

No Credit Scores or Only Two Out of Three Credit Bureaus Are Reporting Credit ScoreUsing Non-Traditional Credit Manual Underwriting

• While many lenders consider three scores mandatory, policies still allow manual underwriting with one, two, or even no scores for non-traditional credit.

Step by Step:

• Check that all your credit accounts are reported to all three credit bureaus.
• If a card appears on only one or two bureaus, consider getting cards from companies that report to all three bureaus.
• Missing credit scores usually appear within a few months as you add new accounts and time passes.
• If still no score: build non-traditional credit
• As you open new accounts, missing credit scores usually show up within a few months.
• Regular bills and payments can also help fill the gaps.
• Save records like canceled checks, bank statements, or letters from creditors as proof of payment.
• Use Experian’s Boostm to help create your credit score.
• Programs like Experian Go help people without a credit file build a credit report and score by using secured cards.
• If you have little or no credit history, Experian Boost can help you quickly build a usable credit score with Experian.

Scenario 6: AUS “Refer/Caution” – how to turn it around

You can strengthen your credit file or, if possible, switch your application to manual review.

Here are some steps:

• Pay down your credit card debts to improve your debt-to-income ratio and lower your credit usage.
• Keep your credit accounts open to build a longer history.
• Make sure you have two or three well-established accounts, each with 12 to 24 months of on-time payments.
• If your credit file is still thin, wait 60 to 90 days after opening secured cards before trying again with the automated system.
• You can also look into different loan programs or lenders.
• Some lenders are more flexible with computer loan approvals, while others use easier rules for manual reviews on VA or FHA loans

Using Secured credit cards to rebuild and re-establish credit to qualify and get mortgage approval

Look for secured credit cards with low fees, easy approval, and no extra steps.

• Secured credit cards are issued by reputable national banks that:
• Report to all three credit bureaus.
• Have reasonable annual fees and offer refundable deposits.
• Try to get three different cards, each with a $300 to $500 limit.
• Each secured card will be the foundation of your credit rebuilding process.

Credit-Builder Installment Loans

• These loans are usually $500 to $1,000, last 12 to 24 months, and have small monthly payments.
• They are reported to all three credit bureaus.
• Set up automatic payments so you never miss one.

Alternative Data Programs and Boosters

• Experian Boost is a free way to add your utility, phone, and streaming payments to your credit profile, which can help your score.
• Rent reporting services can help if you have limited credit history by adding a year or more of on-time rent payments to your credit reports.
• Warning about high-cost lenders: Payday or online lenders with high interest rates are risky and can be hard to pay back.
• If you must use these lenders, only borrow small amounts you can manage and never rely on them as your main way to build credit.
• Free to use this guide as a sticky forum post or a handy one-page handout.

When you get new credit reports, check your scores from all three bureaus and stop any payments you no longer need to make.

• Open three secured credit cards that report to all three bureaus, and avoid high-fee or retail store cards. For small purchases, keep each card’s balance between 10 and 30 percent of its limit each month, and use each card regularly.
• Set all your debts to autopay so you never miss a payment.
• Pay down your credit card balances to below 30% of their limits as soon as possible. Use Experian Boost to add your phone and utility bill history, and consider a credit builder loan for extra help.

Don’t rush to settle old collection accounts.

• Only pay off those that could lead to judgments or those your loan officer recommends.
• Keep your payment record perfect for six to twelve months.
• After that, if possible, try again with the automated system or apply for manual underwriting.

This plan gives your loan officers and credit-repair partners a clear, lender-approved way to help you, in compliance with agency and credit bureau rules.

Begin your path to mortgage approval by addressing major negative marks on your credit. Next, open three or four new credit accounts and manage them responsibly. This guide offers easy steps, card recommendations, and tools to help boost your score.

Key rules lenders care about:

• Maintaining on-time payments over the past 12 months is critical.
• Recent late payments have a greater negative impact than older charge-offs.
• Perfect credit is not required, nor is payment of every collection account.
• The objective is to present a credit profile that automated or manual underwriting will assess as an acceptable risk.
• Most agency loans use a “representative” score (the middle of three scores, or the lower of two) and do not require a minimum score for computer approvals.
• Manual reviews usually need a score of 620 or higher, and some established credit accounts.

Core rebuild plan (works for most borrowers):Follow these steps unless your situation requires a different order.Have 3–4 primary tradelines reporting

• Try to get three secured credit cards, each with a $300 to $500 deposit.
• These cards will help you build stronger credit.
• If you can, add an installment account, such as a credit builder loan, self-lender product, or small personal loan, as long as your debt is not too high for your income.

Use your secured credit cards in the following ways:

• • Keep each card’s balance between 10 and 30 percent of its limit. Let one or two cards show a small balance, and keep another card at or near zero.
  • This approach gives your credit score the best chance to improve.
  • Give your credit score time to reflect your positive habits.
  • With three secured cards and a few months of careful use, you can often turn a denial into an approval from the automated system.
  • A full year of on-time payments can make your application stand out for manual review.
  • Be cautious with credit score booster tools.
  • Use them only if they fit your needs.
  • You can add phone bills, streaming bills, and sometimes rent to Experian for free, which might raise your Experian FICO score a little.
  • Don’t rely only on booster tools, because many lenders check more than just Experian scores.

Scenario 1: Borrowers with outstanding collections and charge‑offs

• Key point: You usually do not have to pay off most collections to get an FHA, VA, USDA, or Conventional loan unless they turn into a judgment, lien, or make your debt too high compared to your income.
• Paying off all collections at once can actually lower your score by making old negative items look recent.

Step 1. Stop the bleeding

• Ensure there are no recent 30/60/90‑day lates on open accounts.
• Prioritize bringing any delinquent revolving accounts or auto loans current.

Step 2. Triage collections

• Unless guidelines or overlays require it, old small medical collections can be ignored.
• For big, recent non-medical collections that could turn into a judgment,
• try to settle them one at a time with written agreements.
• This helps avoid all accounts updating in the same month, and causing your score to drop for a short time.

Step 3. Avoid disputes before the mortgage

• Take off any credit bureau disputes as your lender tells you before your loan is reviewed, especially on non-medical accounts.
• Disputes can hide your real credit scores and affect computer loan decisions.

Step 4. Build new credit

• Even if you have collections, open three secured credit cards and keep balances low.
• Building fresh, positive credit history will do more for you in the long run than just cleaning up old negatives.
• If you don’t have any open credit accounts, start by opening three secured credit cards with $300 limits.
• Pick cards from major banks, not store cards, and avoid those with high fees.
• Make sure the cards report to all three credit bureaus

Optional: Add a Credit Builder Loan

A small loan with automatic payments for 12 to 24 months can improve your credit mix and show you pay on time

• Use and Wait.
• Six months of steady, on-time payments will raise your score and give the automated system a good track record to review.

Scenario 3: Open Derogatory Accounts

Profile: The borrower has no active positive accounts, only closed or potentially charged-off accounts.

Steps to Follow:

• Old Closed Charge-Offs Remain
• Undisturbed Without Cause
• Paying off old negative accounts can make them appear recent, which may temporarily lower your credit score.

Look to closed accounts for judgments and make settlements.

• Get 3 Secured Cards + 1 Builder Line
• Aim for three secured cards and consider adding a credit builder loan.
• As you add new positive activity, your credit will gradually shift from mostly negative to a healthier mix that improves your score.

Scenario 4: Borrowers with Delinquencies on Open Accounts

Recent late payments are a major reason for receiving a ‘Refer’ or ‘Caution’ result in computer loan reviews.

Steps to Follow:

• Bring Everything Current
• Avoid new late payments. Keep in mind that opening a new account might lower your score and could even make a collection account disappear from your report.
• Let Time Pass: The Late Will Age
• Generally, underwriters require 12 months of clean activity to assess the post-late period.
• Pay Down Credit Cards
• Keep your credit card balances below 30% of their limits to give your score the biggest boost.

Goodwill If Applicable

• A goodwill letter lets you explain a one-time late payment, such as one caused by a hospital stay.
• It might help, but don’t rely on it as your main strategy.

No Credit Scores or Only Two Out of Three Credit Bureaus Are Reporting Credit ScoreUsing Non-Traditional Credit Manual Underwriting

• While many lenders consider three scores mandatory, policies still allow manual underwriting with one, two, or even no scores for non-traditional credit.

Step by Step:

• Check that all your credit accounts are reported to all three credit bureaus.
• If a card appears on only one or two bureaus, consider getting cards from companies that report to all three bureaus.
• Missing credit scores usually appear within a few months as you add new accounts and time passes.
• If still no score: build non-traditional credit
• As you open new accounts, missing credit scores usually show up within a few months.
• Regular bills and payments can also help fill the gaps.
• Save records like canceled checks, bank statements, or letters from creditors as proof of payment.
• Use Experian’s Boostm to help create your credit score.
• Programs like Experian Go help people without a credit file build a credit report and score by using secured cards.
• If you have little or no credit history, Experian Boost can help you quickly build a usable credit score with Experian.

Scenario 6: AUS “Refer/Caution” – how to turn it around

You can strengthen your credit file or, if possible, switch your application to manual review.

Here are some steps:

• Pay down your credit card debts to improve your debt-to-income ratio and lower your credit usage.
• Keep your credit accounts open to build a longer history.
• Make sure you have two or three well-established accounts, each with 12 to 24 months of on-time payments.
• If your credit file is still thin, wait 60 to 90 days after opening secured cards before trying again with the automated system.
• You can also look into different loan programs or lenders.
• Some lenders are more flexible with computer loan approvals, while others use easier rules for manual reviews on VA or FHA loans

Using Secured credit cards to rebuild and re-establish credit to qualify and get mortgage approval

Look for secured credit cards with low fees, easy approval, and no extra steps.

• Secured credit cards are issued by reputable national banks that:
• Report to all three credit bureaus.
• Have reasonable annual fees and offer refundable deposits.
• Try to get three different cards, each with a $300 to $500 limit.
• Each secured card will be the foundation of your credit rebuilding process.

Credit-Builder Installment Loans

• These loans are usually $500 to $1,000, last 12 to 24 months, and have small monthly payments.
• They are reported to all three credit bureaus.
• Set up automatic payments so you never miss one.

Alternative Data Programs and Boosters

• Experian Boost is a free way to add your utility, phone, and streaming payments to your credit profile, which can help your score.
• Rent reporting services can help if you have limited credit history by adding a year or more of on-time rent payments to your credit reports.
• Warning about high-cost lenders: Payday or online lenders with high interest rates are risky and can be hard to pay back.
• If you must use these lenders, only borrow small amounts you can manage and never rely on them as your main way to build credit.
• Free to use this guide as a sticky forum post or a handy one-page handout.

When you get new credit reports, check your scores from all three bureaus and stop any payments you no longer need to make.

• Open three secured credit cards that report to all three bureaus, and avoid high-fee or retail store cards. For small purchases, keep each card’s balance between 10 and 30 percent of its limit each month, and use each card regularly.
• Set all your debts to autopay so you never miss a payment.
• Pay down your credit card balances to below 30% of their limits as soon as possible. Use Experian Boost to add your phone and utility bill history, and consider a credit builder loan for extra help.

Don’t rush to settle old collection accounts.

• Only pay off those that could lead to judgments or those your loan officer recommends.
• Keep your payment record perfect for six to twelve months.
• After that, if possible, try again with the automated system or apply for manual underwriting.

This plan gives your loan officers and credit-repair partners a clear, lender-approved way to help you, in compliance with agency and credit bureau rules.

[Gustan Cho]

Purchasing a home in Missouri is feasible once you familiarize yourself with the local market, available state assistance programs, and adjustable mortgage options offered by lenders like Gustan Cho Associates.

Missouri Mortgage Loans: https://gustancho.com/missouri-mortgage-loans/

Why Purchase a Property in Missouri?

Missouri has a variety of home prices, with most being more affordable than prices in coastal states. There is also a variety of market types, including urban, suburban, and rural. Areas outside downtown St. Louis and Kansas City also qualify for USDA financing, meaning no down payment if you qualify for the income and property guidelines.

In Missouri, buyers qualify for local and state programs administered by the Missouri Housing Development Commission (MHDC), which offer below-market interest rates and down payment assistance. When combined with competitive mortgage programs, Missouri becomes more attractive for most buyers, including first-time and move-up buyers.

Missouri Homebuying Process Step-by-Step

Having a clear outline makes the journey less difficult and helps you feel comfortable with the idea of closing day.

1. Pre-approval

• Pre-approval involves a review of credit history, income, and assets, and an assessment of debt to determine a maximum price range and loan options.
• Missouri sellers require strong pre-approval letters before they will consider any offers, especially in the more competitive price ranges.

1. Budget

• Consider more than just the mortgage payment, and include property taxes, homeowner’s insurance, HOA dues (if applicable), and maintenance when determining the budget.

• Your loan officer can help you determine a target price based on a monthly payment you’re comfortable with.

1. Select Your Mortgage Program

• Most Missouri buyers use conventional, FHA, VA, or USDA loans, often combined with MHDC assistance if they qualify.
• Gustan Cho Associates supports over 210 lenders, which provides you with a variety of loan options and underwriting flexibility.

1. Home Shopping with Your Agent

• Your real estate agent can help you identify appropriate neighborhoods based on your budget, commuting preferences, and loan type (e.g., USDA).
• When you find a home, you make an offer and include your pre-approval letter.

1. Under Contract, Start Underwriting

• After an offer is accepted, you lock in your interest rate and order your appraisal. After that, you submit your updated paperwork for processing and underwriting.
• The lender verifies employment, income, and assets, conducts a credit check, and assesses the property’s value and condition.

1. Closing Day and Clear to Close

• Once all conditions are met, you receive a final closing disclosure outlining your specific figures. This happens at least three business days prior to closing.
• On the day of closing, you will sign the final paperwork, pay any necessary fees, and get your keys to your new home in Missouri.

Core Mortgage Options in Missouri

Most buyers in Missouri consider four loan types. Each loan type has its advantages and disadvantages, depending on credit, income, and where you live.

FHA loans

• FHA loans are backed by the Federal Housing Administration and are very popular with first-time buyers or those who have had recent credit issues.
• The down payment is as low as 3.5%, depending on the borrower’s qualifications. Credit requirements are more lenient, and in some cases, manual underwriting is available.
• An upfront mortgage insurance premium and an annual mortgage insurance premium are required. These are what allow FHA to accept buyers who typically would not meet the standard guidelines.

Conventional loans

• These are not government-insured loans. Therefore, they are best for buyers who meet the credit score and income requirements.
• Down payment is as low as 3% for first-time buyers. Private mortgage insurance can be eliminated when the borrower has enough equity.
• Conventional loans are more permissive with second homes and investment homes than FHA and USDA loans.

VA Loans

• These loans are offered to eligible active-duty service members, veterans, and surviving spouses.
• They have 0% down payment, no private mortgage insurance, and some of the best interest rates.
• Most are financed with a loan to avoid paying the VA funding fee, but some are exempt due to disability.

USDA Loans (Large Portion of Missouri Applicable)

In some rural and suburban areas across much of Missouri outside the major city centers, USDA loans are a good option.

There is 0% down financing, and the only restrictions are on the buyer’s income, applicable home costs, and a target debt-to-income ratio of around 41%. The home you finance must be your primary residence, and there are minimum property standards for safety and habitability.

Missouri-Specific Assistance Programs: Missouri buyers can combine conventional loans with state/local programs that may help lower initial costs and monthly payment obligations.

MHDC First Place Program

Assists eligible first-time buyers (and some veterans) statewide with 30-year fixed-rate mortgages, as well as down payment assistance.

Down payment assistance is up to 4% of the mortgage amount and is a second, forgivable loan with stipulations.

There are borrower, income, and purchase price restrictions that are determined by household size and the respective county.

MHDC Next Step Program

It is available to first-time and repeat buyers who qualify for the program’s income and purchase price limits.

Offers lower interest rates with the ability to add in financing for down payment and closing cost assistance.

• Assistance is generally forgivable over time, but using it can sometimes come with slightly higher interest rates, so a loan officer should compare scenarios.

Local city programs

• Cities such as Springfield and Columbia periodically offer targeted down payment assistance or forgivable loans with their own income, credit, and purchase price caps.
• These programs often require you to live in the home as your primary residence for a minimum period and may require homebuyer education.

How Gustan Cho Associates Helps Missouri Buyers

Gustan Cho Associates specializes in educating buyers and pairing them with lenders and loan programs that fit complex or non‑traditional scenarios.

• Wide lender network: With relationships to more than 210 lenders, the team can place loans that need flexible credit, higher debt‑to‑income ratios, or manual underwriting.
• Education‑first approach: Their mortgage guides and homebuyer resources walk you through pre‑approval, documentation, and closing so you know what to expect at each step.
• Strategy on costs: Many buyers can use seller credits or lender credits to offset closing costs, reducing the cash needed at closing without derailing the deal.

For a Missouri buyer, the most effective first move is to request a detailed pre‑approval review, discuss whether FHA, VA, USDA, or conventional best fits your profile, and then layer in MHDC or local assistance where you qualify.

On GCAForums.com, you can encourage users to share their unique situations, credit profiles, and specific goals, enabling the loan officer to formulate customized solutions.

• This reply was modified 2 weeks, 1 day ago by  Sapna Sharma.

[Gustan Cho]

NEW MORTGAGE LOAN ORIGINATOR AT NEXA MORTGAGE ACADEMY

Gustan Cho Associates, a DBA of NEXA Mortgage, And Highlights Recruitment For NEXA Mortgage Academy

Are you new to the mortgage industry? Learn how NEXA Academy can help you start your professional journey. If you are ready to begin your career as a loan originator and seeking the right brokerage, Gustan Cho Associates, a dba of NEXA Mortgage, offers comprehensive training through NEXA Academy.

NEXA Academy instructional videos cover the following topics:

✅ What makes NEXA Mortgage a good fit for you

✅ How the Academy supports and trains new loan officers

✅ A detailed explanation of the compensation structure

✅ Strategies for loan officers to achieve consistent income

✅ What sets Gustan Cho Associates apart from other NEXA competitors

✅ The support and training provided to facilitate successful loan closings

Are you looking for a team committed to your professional development?

• If you want to succeed as a loan originator, contact Gustan Cho Associates to schedule a personalized consultation.
• We will discuss how NEXA Academy and our team can help you reach your professional goals.

Please Leave Your Questions Or Comments Below.

• Subscribe now for insights on the mortgage industry, expert training, and valuable mentoring tips.

Is NEXA Academy Beginner-Friendly? | NEXA Mortgage Training For New Loan Officers

• Are you starting your career in the mortgage industry and looking for comprehensive loan officer training?
• Are you considering whether NEXA Mortgage is the right place to launch your professional journey?
• At Gustan Cho Associates, a dba of NEXA Mortgage, we help new loan originators reach their first milestones through NEXA Academy, our foundational training program.

This Video Will Provide Information On The Following Topics:

✅ How easy it is for new loan officers to work with NEXA Mortgage

✅ Explanation of NEXA Academy and an overview of commission structures and compensation

✅ Expected earnings for first-year loan originators

✅ The support provided by Gustan Cho Associates

✅ The process for obtaining your license and enrolling in NEXA Academy.

• Start your mortgage career with a supportive team.
• Contact us for a complimentary consultation to join Gustan Cho Associates and start your journey with NEXA Academy.

If You Are New To The Mortgage Industry, We Offer The Following Resources:

• Training at NEXA Academy
• Guidance from experienced loan officers
• Support for lead generation
• Access to advanced technology and software for client management
• If you have questions, contact us.
• We respond to every inquiry.

Subscribe for weekly tips, career guidance, and industry insights tailored for new loan officers.

NEXA Mortgage: Is it a good choice for new loan officers?

Are you starting your mortgage career? Here are key reasons why NEXA Academy is an excellent starting point:

✅ Great training

✅ Good support

✅ Good pay

✅ Guidance from experienced loan officers

At Gustan Cho aAssociates nd NEXA Mortgage, we support mortgage professionals at every stage of their careers. If you are ready to advance, contact us for a personalized consultation. Follow us for tips and career guidance.

Are you looking to connect with new clients? These strategies can help you stand out:

• Talking points for the video
• Video promotion social media captions
• Templates for recruitment emails
• Recruitment landing page copy for NEXA Academy

https://gustancho.com/remote-mlo-career-opportunities/

gustancho.com

Remote MLO Career Opportunities You Can Start Today

Gustan Cho Associates has remote MLO career opportunities for branch assigned loan officers and independent branch managers

[Gustan Cho]

Bitcoin exists only online and is tracked through digital accounts, not physical bills or coins. Unlike regular money, there is no central bank in control. Bitcoin uses a blockchain, a shared digital ledger maintained by people around the world. As a result, banks and governments do not control what happens to Bitcoin.

Fundamental Concepts of Bitcoin

• Bitcoin is made up entirely of data and exists only as code within a large digital network.
• No single bank or company controls Bitcoin.
• Instead, thousands of computers around the world work together to keep the system running.
• There will only ever be 21 million bitcoins, which makes them rare.
• Because of this, people often compare Bitcoin to digital gold.
• Currently, one bitcoin is worth about $80,000.

Mechanics of Bitcoin TransactionsHere are the basic steps in a Bitcoin transaction:

1. Bitcoins are kept in digital wallets. These wallets protect the secret codes that prove you own your bitcoins.
2. Network computers, called nodes, check the following:

• You actually own the coins.
• You haven’t already spent the coins.
• Your digital signature is legitimate.

Miners are powerful computers that collect pending transactions into groups called blocks. They then compete to solve difficult math problems. The first miner to solve the problem adds a new block to the blockchain. As a reward, they receive new bitcoins and transaction fees. block links to the previous one using cryptographic codes, creating a chain of records nearly impossible to alter. The blockchain is a public ledger, open for anyone to inspect and see who owns what.

• The Bitcoin project began in 2008 and was created by someone or a group using the name Satoshi Nakamoto.
• Nakamoto started Bitcoin as a response to the 2008 financial crisis and concerns about money controlled by central authorities.
• At first, Bitcoin was worth only a few dollars.
• As more people became interested and demand grew, its price rose.
• Today, Bitcoin is surrounded by regulations, custodial services, ETFs, futures, payment processors, and many exchanges.
• Early worries about anonymity and crime were partly true, but these concerns are now mostly overstated or outdated.

Verified Facts:

• As recently as 2018, academic studies found that much of early Bitcoin activity was linked to illegal markets, such as drug sales on the dark web.
• Bitcoin transactions do not require the use of real names, which can facilitate their use in illicit activities.

What is often misunderstood:

• Every Bitcoin transaction is recorded forever on the blockchain and can be traced using forensic analysis.
• These records cannot be changed and are open to the public.
• Recent studies show that as Bitcoin has become more common and criminals have moved to privacy coins, only a small percentage of Bitcoin activity is now illegal.
• Since Bitcoin can be traced, law enforcement has seized billions of dollars in Bitcoin.
• This would be much harder to do with cash.

Bitcoin is not a hidden source of untraceable money. Instead, it works more like cash, but with a permanent public record of every transaction. With enough analysis, people’s identities can often be found. If you are thinking about a diverse investment portfolio, here are the main reasons for and against investing in Bitcoin.

Potential BenefitsDiversification and Asymmetric Return Potential

• Early adopters who believed in Bitcoin have seen their fortunes grow dramatically as its price soared.
• Usually, Bitcoin’s price moves independently from traditional assets.
• However, during times of market trouble, their prices can start to move together.

Scarcity and Programmability

Because Bitcoin has a limited supply and a fixed issuance rate, many people see it as protection against currency devaluation.

• Bitcoin allows people to send any amount of money instantly to anyone in the world, without using banks or wire services.
• This speed and flexibility appeal to both wealthy individuals and large institutions.
• Today, investors can buy Bitcoin through regulated futures contracts, exchange-traded funds (ETFs), and secure custodial services.