On May 8, our MCAN Mortgage Masterclass | Discover Webcast gave attendees exclusive access to our Discover Alt series and Deal Run Hub, showcasing how this powerful combination delivers mortgage success through efficiency, speed and real-time insights. Participants experienced live deal run demonstrations revealing our step-by-step evaluation process, gained valuable market intelligence on current and emerging industry trends, and learned the top 5 deal essentials to ensure faster, smoother closings for their clients.
Here’s your essential guide to stay current, including key FAQs from our Q&A session. Watch for 2025 event announcements coming shortly…
Remember, you can always access Broker Resources here.
Missed the session, part of it or want to revisit the key points? Access the webcast recording here.
There’s an MCAN deal on your desk! Unsure? Connect with the deal run team to discuss policy, lending areas and property questions ahead of submission. Your approval ratio is about 85% when you use the deal run team AND we’ll add 5 bps to your comp!
Reach out to: DealRun@MCANfinancial.com
Q: Is there a premium for lower credit scores (Beacons)?
A: Yes, pricing adjusts based on Beacon scores. Below 500, deals are considered under the “65-65-65” non-conforming program with case-by-case exceptions.
Q: Will MCAN pay out an existing Vendor Take-Back (VTB) mortgage?
A: Yes, VTBs are treated like other private mortgages and can be paid out.
Income & Employment
Q: Can you use income from a realtor’s commission?
A: Yes, we use net commission statements (Agent Earnings Reports) for realtors, not T4As. No self-declared letter is needed.
Q: Can we gross up a realtor’s net income?
A: No. Commission statements cannot be grossed up.
Q: For self-employed borrowers, can we use income paid to a spouse’s corporation?
A: No. If the primary borrower is self-employed, salary to a spouse who is on the deal would be considered “double-dipping”, i.e., we’re counting the same income twice.
Q: Does MCAN offer a stated income program (BFS)?
A: Yes, the Bank Statement Program (BFS Pro) requires:
Q: Can border income be used for purchases?
A: No, only for refinances (must show 3–6 months of residency). Contributor income (family) may be used for purchases on exception basis if family member currently resides with client(s) and will be moving into the subject.
Q: What’s the max rental income allowed?
A: Up to $1,500/month (combined from 2 borders), capped at 30% of total income.
Property & Programs
Q: Do you consider mortgages under a HoldCo?
A: Yes, however:
Q: What’s the premium for rental properties?
A:
Q: Can you finance hobby farms or agriculturally zoned properties?
A: Only if no farming activity (e.g., no livestock). Zoning must be residential or agricultural with no active farming.
Q: What about properties in industrial areas or “as-is” sales?
A: Case-by-case. Requires appraisal/upfront inspection. Power-of-sale properties must be MLS-listed.
Credit & Ratios
Q: Will you consider clients with missed/late mortgage payments?
A: Yes, minor delinquencies, with explanations (e.g., life events). Current arrears are a hard decline for conforming deals but may fit non-conforming (65% LTV max).
Q: What’s the premium for 35-year amortizations?
A: No premium for owner-occupied. For rentals, +55 bps vs. 30-year.
Q: Can the 1% lending fee be rolled into the interest rate?
A: Yes. The rate adjustment depends on the term (longer terms = smaller rate increase). Contact DealRun@MCANfinancial.com for calculations.
Renewals & Penalties
Q: How are renewals handled?
A: Renewal fee based on outstanding balance.
Q: How are penalties calculated?
A: Client-friendly methodology. Brokers can inquire with the servicing team (consent form required).
Client support for Credit Optimization, Rehabilitation and Education. Program details here.
