Hello, LOs!
Industry experts are taking note of the opportunity in non-QM loans amid shrinking origination volume.
Angel Oak Mortgage Solutions expects the non-QM market to grow up to four-fold in 2022, ranging between $70 billion and $100 billion. That compares to 2021 non-QM volume of $28.6 billion, according to S&P Global.
"More people are diversifying their income streams and opting to work for themselves or through real estate investments. While this segment of the population may be completely credit-worthy, they don't always fit the traditional qualification guidelines to get a home loan," said Jeff Gravelle, co-head of production at Newrez.
Lenders offering non-QM options will tap into a market of historically underserved borrowers, who may have been rejected when applying for more traditional loans due to factors including high debt-to-income ratios and low reportable income.
"As that [non-QM] sector continues to grow, so does the potential for loan officers and brokers to bring them on as customers with the right type of products," Gravelle said.
One company ramping up non-QM is United Wholesale Mortgage, which announced that it will accept personal or business bank statements in self-employed borrowers' loan applications.
But there are challenges with expanding into non-QM, especially as it relates to underwriting expertise and just the timeline to serve buyers with more complicated scenarios.
LOs, are your firms considering adding non-QM loan products? If so, what are some of the most popular products and programs?
Please send your thoughts to me at connie@hwmedia.com
Connie Kim
Mortgage reporter, HousingWire
EmoticonEmoticon