Non-QM Loan Programs–A Lifeline For Brokers

The non-QM market has expanded dramatically in recent years despite the ripples of Covid-19. Moreover, it will be more vital than ever as a result of developments such as the transition to buying, the expanding gig economy, and single-family rental investment. You have the chance to provide loan products to underserved customers such as self-employed professionals, foreign nationals, high net worth people, and those with bad credit. We assist you in delivering non-QM loan programs through retail, wholesale, and correspondent channels.

How different is it from Qualified Mortgage(QM)?

Qualified mortgages are typically standard government-backed and conventional loans (basically non-government-backed traditional loans). Non-QM loans, on the other hand, are primarily portfolio loans made to private investors that do not follow rigorous government or traditional mortgage criteria. On owner-occupied property, QM Loans are often conducted through a bank, but NON-QM Loans are a more attractive choice for real estate investors on an investment property.

Why Non-QM is your biggest opportunity yet?

Efficiency

Give your originators immediate feedback instead of waiting for a response from their account executive, situation desk personnel, or manual underwriting team.

Confidence

Reduce surprises for your originators and borrowers by providing risk-adjusted pricing and program rules eligibility upfront.

Transparency

Allow all counterparties—borrowers, sellers, purchasers, and investors—to independently authenticate each loan’s credit profile and show ATR and Fair Lending.

Scalability

By effortlessly and effectively extending your non-QM chances, you can serve more borrowers and win more agreements.

What’s In It For You?

Reduce False Starts

Many originators do not fully grasp the non-QM programs available and are scared to invest time putting up a loan package that may be refused. This is where we step in.

Our solutions may be adapted to your loan programs to help your originators identify borrower suitability, price risk appropriately, ensure adherence to rules, and gather necessary supporting paperwork. This reduces the number of false starts, which can lead to unpleasant shocks, increased operational expenses, and the burden of disclosures, unfavorable action, and HMDA reporting.

Extend Your Horizons

Put yourself in front of brokers and correspondents who have never done a non-QM loan or have had a terrible experience doing so. Our system is already integrated with the most common LOS platforms and is also available as a complete online interface. API connection allows enterprise clients with proprietary platforms to access all of our services.

Non-Agency Lending Can Benefit From Agency Processes

The agency channel has depended on price engines and automated underwriting systems for decades. To expedite the origination of these new creative credit programs, use comparable automation to that used for non-QM delivery.

Wrapping Up

A Non-QM loan may be the answer to a borrower’s desire to realize the American dream of house ownership. Non-QM loans are underwritten differently from traditional or government-backed loans. Non-QM loan lending rules adhere to regulatory criteria while taking into account a borrower’s Ability to Repay (ATR) in accordance with the loan’s conditions.

AHL Funding offers many Non-QM programs, each with its unique set of fees and conditions. Applicants, like qualifying loan applicants, must go through a complete evaluation procedure to determine their capacity to make future payments effectively. It is a prudent lending method that allows us to accept alternative evidence such as pay stubs and W2s.