Quontic has one of the most unique mortgage product offerings on the market, thanks to our CDFI designation. It’s our Community Development Loan program, or CDL for short.
If you’re wondering, “What is a Community Development Loan?” It’s simple. A CDL loan is simply a loan that uses non-traditional methods of mortgage qualification to help a borrower get approved for a home loan. What sets Quontic’s CDL loans apart from other lenders’ non-QM loans is that we’re a U.S. Treasury designated Community Development Financial Institution, or CDFI. As a CDFI we get to lend to borrowers who would not normally be able to receive a loan due to having low-income or not being able to document sufficient qualifying income the traditional way. This includes gig-economy workers, cash-income clients, self-employed clients, and small business owners (to name a few). As a CDFI, we’re not the everyday non-QM lender.
Other non-QM lenders who seek to provide documentation alternatives to tax returns and W2s tend to require a stack of bank statements from which they try to extrapolate proof of income. But not Quontic. We can give borrowers the opportunity to provide self-prepared P&Ls for their small business, or in some instances we can rely solely on factors other than income in making our lending decisions – and this is exciting for both our customers and our lending officers.
Our unique CDL loans, in general, are just much simpler. It’s non-traditional; It’s less paper; It’s an easier process; And even though we’re not dealing with tax returns and pay stubs, it’s still a very secure loan. We know it’s secure because this product has an incredible track record with extremely low historical default rates – even through the COVID pandemic. Our non-QM loans give us the ability to lend to customers with good credit and equity who have been declined by other lenders due to not being able to comply with complex income documentation rules. This grows our opportunities and also results in referrals. At this point, I literally get more business than I can handle, which is a good problem to have.
Another unique feature of our CDL lending capabilities stems from the fact that we’re a federally chartered bank. This allows us to lend nationally. I’ve been able to expand my business beyond the tri-state area. Via phone and e-mail, I’m able to close for people I’ve never met in person. I’ve had customers from Virginia, Louisiana, and Alabama among other states. For them, Quontic’s CDL loans are a needed product.
Another crucial detail to note is that our CDL program is not a revival of the risky loan products which led to the 2008 financial crisis. Our CDL program is a much safer approach to lending which provides income documentation relief but without that same risk we dealt with pre-2008. Back then, borrowers could get 100% financing with poor credit and no job. But now, we’ve done the math and the risk assessment, and we’ve discovered that even through the worst years of the credit crisis, borrowers who had good credit and significant down payments performed better than those with higher LTVs and poor credit – regardless of whether the loan was “full doc” or “no doc.” In short, equity and credit ruled the day when predicting a borrower’s ability to repay a mortgage loan. In that light, we built our CDL product line.
As a loan officer, if you’re looking to expand your business, we have both the reach and the additional loan products (aside from the conventional stuff). We have the tools to allow you to do more loans than the average lender. 80% of the business I do are CDL mortgage loans. Not to toot my own horn, but I’m one of the top originators at the company. After 7 years working with CDLs, I’ve certainly made a career out of it. And I say this with confidence. If you add CDL lending to your toolbelt, you can make a strong six-figure income, maybe even seven. You’ll get busier, but you’ll have more lending firepower. If you’re interested in joining the Quontic team, give us a call and check out our website.