Consumer Direct Mortgage Review

4.3 stars out of 5

The Smart Investor reviews are unbiased, and reflect the views of our editorial staff. We’ve collected the information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

About Consumer Direct

Consumer Direct Mortgage is a division of FirstBank, of Franklin, TN.  Consumer Direct’s home office is in Del Ray Beach, Florida.  Its operations and servicing offices are in North Carolina and New Jersey, respectively.

Consumer Direct’s web site claims that its cutting-edge technology allows them to do more with less and pass the savings on to the consumer.  There are currently 47 loan officers on staff, covering all 50 states.  According to a spokesperson, Consumer Direct Mortgage closes approximately 1,000 loans each month. 30% of their loans are in the western US.

Consumer Direct Pros & Cons



Mortgage Products, Fees, And Conditions

Consumer Direct Mortgage offers standard mortgage programs available at most traditional lenders. These include Fannie Mae and Freddie Mac conventional loans and Jumbo loans.  They also offer FHA, VA and USDA government loans.  Their loans can be used to purchase a property or refinance.  The minimum credit score is 620.

Where allowed, the loan types shown here may also be available for 1-to-4 unit investment properties.

Following are the loan types offered:

These are the most popular loan type, due to their stable payments that doesn’t change until paid off.  Fixed rate loans reduce the concerns that interest rates might rise in the future. Generally, the shorter the term, the lower the interest rate.

These offer the lowest interest rates for the initial fixed-rate period (five, seven or ten years), allowing the borrower to maximize their monthly cash flow or afford a more expensive home.  After the initial fixed-rate period, the interest rate will adjust annually, subject to caps. These are best for people who believe they will not own the home for the long term.

Fixed rate and adjustable rate mortgages are available for loan amounts over $453,100 and up to $3 million.  Consumer Direct refers to Jumbo loans as “Plus Size” mortgages.

These include FHA, VA, USDA, FHA and VA Streamline loans.  If someone qualifies for a Streamline loan, no appraisal is required and minimum documentation is required.  Streamline loans make the process easier for those who already have an FHA or VA loan and seek to refinance it.  Government loans often have lower interest rates, smaller down payments and more flexible credit requirements than conventional loans.

Consumer Direct Mortgage Process

Consumer Direct’s business model is a hybrid of online and traditional lending.  If a prospective borrower completes the application online, one of Consumer Direct’s loan officers follows up with a phone call.  Consumer Direct’s origination platform does not include mobile or tablet applications.

The borrower can also call the toll-free number and complete the application over the phone.  Completely online experience is not offered.

Due to efficiencies that can be achieved through online lending, Consumer Direct Mortgage keeps costs down.  This allows for very competitive rates.  Their lender fees are $675.  This is less than half the fees charged by traditional lenders.  For the borrower, this can mean the best – low rates and low closing costs.  Consumer Direct also offers fast service, a key issue in competitive housing markets.  They can close loans in 30 days or less.

The Steps For A Mortgage

The Consumer Direct Mortgage process is straightforward.  It appears at the bottom of the web pages for both purchase loans and refinances loans, respectively.

The mortgage process is as follows:

1. Pre-Qualification to Application – complete and submit an application.
2. Gather Essential Information and documents. This includes Income documentation, down payment documentation, homeowners insurance information and other documents, based on your situation.

3. The loan is submitted for processing and underwriting.
4. Clear any underwriting conditions.
5. The final disclosure and closing Process

Should You Consider Consumer Direct Mortgage?

If a borrower is a first-time homebuyer seeking education about the homebuying and mortgage process and what they might qualify for, then Consumer Direct is a great option. Likewise, if a borrower has poor credit scores or unverifiable income, Consumer Direct would not work well for them.