DBRS Morningstar Confirms Ranking on Acra Lending

DBRS, Inc. (DBRS Morningstar) confirmed the MOR RO2 residential mortgage originator ranking for Acra Lending (the Company). The trend on the ranking remains Stable.

The ranking confirmation reflects the following:
-- The Company has been profitable six out of the last seven years.
-- A stable and experienced senior management team.
-- While the overall origination staff has decreased by approximately 170 full-time equivalents over the last year because of decreased production volumes, the Company continues to monitor its staffing levels to hire ahead of future growth projections.
-- The Company’s focused enterprise risk management framework that is used to identify and mitigate risks.
--Targeted origination channels with comprehensive approval and monitoring practices for third-party originators and detailed underwriting guidelines that are well defined and include manual underwriting reviews.
-- An established information technology platform augmented with third-party tools to reliably originate its loan products.

All rankings are subject to surveillance, which could result in rankings being raised, lowered, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar North American reverse mortgage originator rankings are not credit ratings. Instead, they are designed to evaluate the quality of the parties that originate reverse mortgage loans. Although the originator’s financial condition contributes to the applicable ranking, its relative importance is such that an originator’s ranking should never be considered as a proxy of its creditworthiness.

Notes:
The principal methodology applicable to the ranking is U.S. Residential Mortgage Originator Rankings (June 26, 2023; https://www.dbrsmorningstar.com/research/416455).

For more information on this ranking or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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