Partnership helps borrowers enroll in Income Driven Repayment (IDR) plans, lower DTI and unlock improved home financing options
(CORONA, Calif.) — NEWS: Mortgage Coach, the industry’s leading platform enabling mortgage lenders to create digital and accurate home loan options for consumers, today announced its partnership with LoanSense, an online student loan advisor that helps federal student loan holders enroll in affordable repayment and forgiveness plans. The partnership equips mortgage lenders to help homebuyers with high monthly federal student loan payments achieve better home financing outcomes by enrolling in federal student loan Income Driven Repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).
Despite strong incomes and credit scores, many of the 42.9 million Americans with federal student loan debt are either denied home financing or have reduced home purchasing power because they have higher debt-to-income ratios (DTIs) due to student loans. Many mortgage lenders and consumers do not know about federal IDR plans, which can substantially reduce monthly student loan burden for borrowers of every income level and for borrowers who carry student debt and did not graduate.
Mortgage Coach’s partnership with LoanSense gives lenders access to a purchasing power calculator that determines how much borrowers’ monthly student loan payments can be reduced – and how much their home purchasing power can be increased – through enrollment in an IDR plan. Once borrower eligibility is determined, loan originators can electronically refer borrowers who would benefit from enrolling in an IDR plan to LoanSense, where they will receive assistance navigating the complexities of correctly completing and submitting their IDR application. Upon IDR plan enrollment, LoanSense notifies lenders so they may resume the home financing process with increased purchase power, which can be accessed in as little as three weeks.
LoanSense also helps eligible consumers correctly enroll in PSLF, which discharges remaining federal student loan debt after 10 years of full-time employment in public service.
Alongside each LoanSense purchasing power calculation, Mortgage Coach generates a Rent vs. Own Total Cost Analysis (TCA), which compares the costs and equity gains of renting, owning and owning a more valuable home with increased purchase power over time. The instant accurate illustration of the borrower’s adjusted monthly student loan burden and mortgage benefits is a first-of-its-kind innovation, giving lenders the ability to educate and support borrowers making homeownership more accessible.
“Addressing the barrier student loans present to homeownership is part of Mortgage Coach’s ongoing and relentless effort to equip lenders with data and technology benefits to better serve their communities with more home financing options,” said Mortgage Coach President Joe Puthur. “The impact of reducing a borrower’s student loan payment by a few hundred dollars a month can be life-altering. It could mean $50,000 more for a better school district, an extra bedroom or closer proximity to employment.”
“LoanSense is a mission-driven organization committed to helping improve the financial outcomes with our unique technology for the millions of Americans in student loan debt,” said LoanSense Founder and CEO Catalina Kaiyoorawongs. “A home is 80% of the average American’s wealth at retirement and delaying access to student-debt burdened borrowers will have major socio-economic impacts. We are pleased to integrate and partner with Mortgage Coach, who is equally committed to improving financial and homeownership outcomes for all prospective borrowers.”
“The LoanSense integration is available to any Mortgage Coach member, including our Broker Edition subscribers,” added Kelli Hodges, COO of Mortgage Coach. “Everyone on the homeownership journey and every professional we serve should have access to this path of more affordable financing.”
About Mortgage Coach
Mortgage Coach is the industry’s leading platform that allows mortgage lenders to create digital and accurate home loan comparisons for consumers. With the Total Cost Analysis presentation, lenders can create a multi-option comparison, offering the borrower a more personalized digital experience. This level of transparency has revolutionized the rate quoting and pricing process allowing borrowers to make faster, more informed mortgage decisions and ultimately, increase production and pipeline conversion for lenders of any size. For more information on how to start using borrower education as a competitive advantage, please visit http://www.mortgagecoach.com/.
LoanSense is a student loan digital advisor. Seventy-one percent of those filing into federal loan programs unknowingly commit errors and get rejected from loan forgiveness costing them thousands of dollars. With LoanSense, borrowers get matched to the best federal loan repayment plan and get payments counted towards loan forgiveness, saving them thousands of dollars. For more information, visit http://www.myloansense.com/ or follow LoanSense on LinkedIn, Facebook, and Twitter.
Twitter: @MortgageCoach @LoanSenseapp #studentloans #homeownership
Related link: http://mortgagecoach.com/
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