Susan Brown
Susan Brown is the senior vice president, Residential Construction and Renovation Loan Production Director with Umpqua Bank, is a seasoned financial services industry professional with 15 years executive leadership experience. Her role in construction loan production allows her to focus on two important initiatives: ADUs and manufactured homes. Susan is a Certified Mortgage Banker and Accredited Mortgage Professional. She has seats on Fannie Mae and Freddie Mac Advisory Boards, prominent roles on national Industry Panels and influence at the Mortgage Bankers Association.
Questions Asked and Answered
Let’s talk about the common ways that ADUs are financed to get that out of the way, because that’s not going to be the focus of today’s conversation. (as you put it, ‘Cash Loans from relatives, Home equity line of credit, Full refinance’)
Let’s talk in broad strokes about construction and renovation loans. Most homeowners haven’t used them before. What are they and how do they work?
Roughly how many ADU construction loans has Umpqua done?
For Umpqua, ADUs fall squarely within this bucket of construction loan financing, correct? Is that also true for all other banks and credit unions? Why not?
Which types of banks and credit unions would be likely to be willing and able to do construction and renovation loan financing for ADUs?
Does Umpua do portfolio lending for ADU construction loans, or only loan products securitized by GSEs?
What are some of the remaining internal and external policy barriers that still stymy your ability to do more with ADU loans?
How are you handling pre-loan issuance(?) construction and renovation appraisals currently?
Can 75% of future rental income potential be counted toward an individual’s DTI with homestyle renovation loans?
Does the property that is loaned on have to be owner occupied, or can it be for a rental unit?
If someone wanted to find renovation/construction loan financing options for non-owner occupied housing, what types of banks and credit unions would they want to look for?
Is the conforming loan limit a barrier in terms of loaning for inner neighborhood properties that wish to build an ADU?
Has Umpqua been considering how to position its services in light of middle housing?
What are some policy or regulatory matters related to ADU financing on the horizon with Fannie and Freddie that you’d be able to share?
What are some general aspirations that you have as far as financing innovation goes?