Operations

The remarkable business record of CPI is attributed to sound senior judgement, proven track record, as well as the unique nature of its business. Many lending institutions set loan standards so high that it procludes borrowers from obtaining loans when in fact, they are qualifies from an earnings record and down payment. Capital Plus has kept its loss ratio minimal, and will continue to do so because of strict underwriting guidelines. Capital Plus is a consumer oriented company; we originate each fixed rate RESPA compliant mortage loan with little to no closing costs or fees to the buyer. In addition, our loans contain no balloon payments, prepay penalties or adjustable rates. It is our business practice to originate each loan with the intent of retaining the loan in our portfolio, making us very sensative to the sustainability and affordability to the customer. Our income testing indicates that our average loan balance at point of origination is no more than 2.5 times the annual income of the borrower, this being a more conservative approach than the traditional mortgage lender who may allow up to 4x their annual income. Our experience indicates that the 10% minimum required equity in their home at time of purchase dramatically reduces deliquency and defauts. Unlike the traditional mortgage industry, we find little correlation between performance and credit score. Our homeowners value their hard earned money to purchase a home and this is reflected in their punctual and timely payments.