The full extent of the global pandemic’s impact on our country will not be known for some time. However, lenders can employ a wide range of tactics in the meantime. They can cut costs, reduce capacity, and rely on fewer loans to survive. Alternatively, they can stay competitive by adding products to their menu that will appeal to more borrowers. We can be certain that lenders will adopt the latter strategy.<\/p>\n\n\n\n
Non-QM is likely to be high on lenders’ list of new products that will appeal to mortgage borrowers. This is unquestionably an excellent time to offer these products.<\/p>\n\n\n\n
Here are some compelling reasons to consider Non-QM products right now.<\/p>\n\n\n\n
In the mortgage industry, it takes money to make money. The business will dry up if there is no liquidity. Last year, rating agencies stopped rating Non-QM loans, and warehouse lenders backed away from the products in response to COVID-19.<\/p>\n\n\n\n
The first reason that more lenders are adding Non-QM loan products to their menus is that liquidity has returned, and investors are eager to purchase their output. The Federal Reserve’s recent actions have resulted in liquidity flowing back into this sector. In fact, it is now better than it has ever been.<\/p>\n\n\n\n
When Non-QM loan production fell off last year, there was a significant amount of unmet demand in the market. Although demand has been increasing, lenders have been slow to return to the market. This is a fantastic opportunity for industry executives.<\/p>\n\n\n\n
In the current market, we don’t see much competition for borrowers, but we have reason to believe that will change dramatically in the coming months. We anticipate that Non-QM loan production will be at historic levels by 2023.<\/p>\n\n\n\n
When COVID struck, many lenders were still attempting to meet consumer demand for Non-QM products but were unable to finance the assets in the short term due to the withdrawal of warehouse lenders. However, their position on Non-QM has shifted.<\/p>\n\n\n\n
The products have been around for several years, and their performance is well-documented. The proof of progress is in our numbers. As witnessed in the doubling of its market share, representing about 4% of the first mortgage market in 2022 <\/a>(from less than 2% in 2020).<\/p>\n\n\n\n Mortgage is a highly cyclical industry that experiences ups and downs in response to market conditions. Associating with partners allows the business to easily scale up or scale down as needed. Furthermore, these partners can provide other value-added services such as a strong helpdesk and support staff, which is a critical investment that not all lenders will be able to make on their own.<\/p>\n\n\n\n The finance ecosystem is changing every second. In this shifting environment, you should offer a range of programs and products for the unique circumstances of borrowers. Consider the borrowers you’ve met who, due to a prior credit event, would not qualify for a conventional loan rating. Different types of borrowers will always exist. Position yourself as a resource who can meet the majority of borrowers’ loan requirements. The full extent of the global pandemic’s impact on our country will not be known for some time. However, lenders can employ a wide range of tactics in the meantime. They can cut costs, reduce capacity, and rely on fewer loans to survive. Alternatively, they can stay competitive by adding products to their menu that […]<\/p>\n","protected":false},"author":3,"featured_media":2769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[36,35],"tags":[],"_links":{"self":[{"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/posts\/2768"}],"collection":[{"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/comments?post=2768"}],"version-history":[{"count":3,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/posts\/2768\/revisions"}],"predecessor-version":[{"id":2956,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/posts\/2768\/revisions\/2956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/media\/2769"}],"wp:attachment":[{"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/media?parent=2768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/categories?post=2768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ahlfunding.com\/wp-json\/wp\/v2\/tags?post=2768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}5. Scale with unprecedented ease<\/h2>\n\n\n\n
6. Borrowers need to diversify their offerings<\/h2>\n\n\n\n
Non-QM is not only a fall-out product. There is a huge underserved market that can benefit from non-QM loans. Visit our broker approval page to apply<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"