Contract Exchange Corporation was founded in April of 1981. At the time, interest rates were near their all-time highs as the Federal Reserve “wrung” inflation out of the economy. With 30 year mortgage rates around 17%, many Sellers turned to that age old instrument, the Land Installment Contract as a means to sell their properties. Able to offer potential buyers 9% (a very good rate at the time), Contracts facilitated the continued function of the real estate market. This system relied in part upon investors who would purchase these contracts, often at a discount, so that the Seller could pay off their mortgage and move on from the property. It was at the age of 28, first child on the way, which Anthony E. Schubert struck out on his own to purchase, resell and service these contracts for a growing pool of private investors.
Since then, the business has grown, many investors staying with Tony the entire way. First Tony Jr. joined the firm, acting as realtor in the large and favorable market of Polk County. This precipitated the development of purchasing not only contracts but also real property itself. The unfolding foreclosure crisis in 2007-2009 provided ample opportunity and the tightened credit market meant that money was scarce, even at record low interest rates. Properties are then sold on Contract to generate the investments that were desired by the clients of Contract Exchange. This has proved successful even has the real estate market stabilized over subsequent years.
The backlash against the reckless lending of the 00s, has strangely enough roped in Contracts, even though they were in no way part of the problem. This has led to a palpable change in business environment. Tony’s other son Christopher joined the firm part way through 2013, the stated purpose being to help navigate the changing regulatory and business environment, and chart a path forward for the company, now aged over 3 decades.
Contract Exchange Corporation is one that is used to adaptation. The current climate presents the stiffest challenge yet to our organization’s ability to adapt. However, we believe that expanding access to housing and credit to underserved populations remains critical to the long term health of our Iowan communities. Contracts offer a better model for the subprime space than traditional mortgages and we intend to continue originating and servicing these instruments with full compliance of the law.
Changes to the Property Value could change the results in a significant way. Lendersa® sliders allow you to make fast changes to explore your financing options.
You can change the property value by moving the Property Value slider up or down or by entering a new Property Value manually in the Property Value box.
When you change the Property Value, only the LTV will change, and the Loan Amount will remain the same Loan Amount.
Other advanced sliders’ options are available with Lendersa® Advanced Calculator
CloseChanges to the loan amount, even so slightly, could change the results in a significant way. Lendersa® sliders allow you to make fast changes to explore your financing options.
The Loan Amount Slider
Change the Loan Amount by moving the Loan Amount slider. (The LTV will change, and the Property Value will remain unchanged).
The LTV Slider
Change the Loan Amount by moving the LTV slider. (The Property Value will remain unchanged).
Other advanced options are available with Lendersa® Advanced Calculator
CloseLTV is the abbreviation of Loan To Value, and it is the ratio between the Loan Amount and the Property Value. The formula to calculate LTV is Loan Amount divided by the property value. 
Example: Loan Amount $300,000, Property value $400,000 
Changes to the LTV, even so slightly, could change the results in a significant way. Lendersa® sliders allow you to make fast changes to explore your financing options.
The Loan Amount Slider
Change the Loan Amount by moving the Loan Amount slider. (The LTV will change, and the Property Value will remain unchanged).
The LTV Slider
Change the Loan Amount by moving the LTV slider. (The Property Value will remain unchanged).
Other advanced options are available with Lendersa® Advanced Calculator
Close
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NMLS 1795154