Carrington Mortgage Services in Santa Ana, Calif., is looking to acquire loans from banks and credit unions.
The unit of Carrington Holding Co. of Greenwich, Conn., touted the new program as a way for depository institutions to reduce the risk in originating conventional and government loans.
"This is yet another step in Carrington's plan to aggressively expand its reach in the changing market and help more people get into the homes they want," Ray Brousseau, executive vice president of Carrington Mortgage Services' lending division, said in a press release issued Wednesday. "Now more consumers can access Carrington's extensive lending and servicing capabilities through their neighborhood banks and credit unions. We believe that these institutions will grow to appreciate what makes Carrington an ideal wholesale lending partner for third-party originators - breadth of product, competitive pricing and unmatched commitment to help our partners succeed."
Carrington Mortgage offers loans guaranteed by the Federal Housing Administration, the Department of Veterans Affairs and the U.S. Department of Agriculture, as well as FHA and Freddie Mac products for homeowners planning to refinance their mortgages.
The unit was formed in 2007 to service loans held by Carrington's investment funds, and has since expanded into origination. In May 2011, Carrington settled a lawsuit with the Ohio Attorney General's Office and the state's Department of Commerce alleging that it had violated consumer protection laws with its loan modification practices. Carrington has also drawn fire for strategies such as stockpiling foreclosed homes, which critics allege allow the company to benefit from its holdings of low-ranked residential mortgage-backed securities at the expense of investors.