Carrington Mortgage Services (CMS) is a mortgage company located in the United States and they offer asset management, mortgages, real estate transactions, and real estate logistics. It was just last week that they started to offer conventional loans, as opposed to the government loans that they previously only offered. Carrington is unique in that they offer loans to individuals credit scores as low as 550, which is much lower than the norm. Banks such as Bank of America or Wells Fargo may not go lower than a FICO of 620, leading you to wonder about who is really there to service the under-served. 

CMS was founded in 2003 in California by Bruce Rose and is a subsidiary of Carrington Holding Company which is a privately managed investment management company. Back in 2013, the Securities Exchange Commission (SEC) investigated Carrington Holding Co. for their $188 million purchase of New Century, a mortgage servicing operations. In order to finance the deal CHC depended on the firm’s later issuing special securities to the investors in its hedge funds. However, after 18-months of investigation the SEC decided not to take any further action against them.

Carrington Mortgage Services has been a Better Business Bureau (BBB) Accredited Business since August 6th, 2007. The BBB as awarded Carrington Mortgages with an A+ rating. They company has closed 375 complaints with the BBB in the last 3 years and 236 in the last 12 months. The complaints stem from a variety of reasons; 50% of the complaints were due to problems with the product/service, 46% were due to billing/collection issues, and the remaining 4% were either for advertising/sale issues or delivery issues.

I have been reassured, by a representative of the company, that any servicing issues or customer service issues have been resolved and that the majority of complaints have been in the past.  Offering loans to homebuyers with FICO’s in the 500s shows their commitment to servicing the under-served.  They are one of only a few lenders helping that segment of the market.

What the reviewers say:

Better Business Bureau:

  • Of the 47 customer reviews filed with the BBB 95.7% of them are positive, 2.1% are neutral, and 2.1% of them are positive
  • 97.9% of reviewers stated that they would not recommend this business to a friend while 2.1% said that it was likely that they would recommend them

To read full reviews and find out more click here

Consumer Affairs:

  • Of the 203 ratings Carrington Mortgage received 1 out of 5 stars
  • 97% of reviewers gave them 1 star

To read full reviews and find out more click here

 

What the employees have to say:

Indeed

  • Of the 59 reviews Carrington Mortgage Services has received 3.1 out of 5 stars

To read full reviews and find out more click here

Glassdoor

  • Of the 62 reviews Carrington Mortgage Services has received 2.6 out of 5 stars
  • 51% of reviewers state that they would recommend the business to a friend and 57% of them approve of the CEO (Bruce Rose)

To read full reviews and find out more click here

 

Did you enjoy learning about Carrington Mortgage Services? Then check out our other mortgage company spotlights on Penn Financial and Quicken Loans!