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For enterprising mortgage women, Non-QM products offer a promising new source of borrowers and revenues. That’s because the pool of potential borrowers who fall outside of agency requirements who would benefit from a Non-QM loan solution is vast. These borrowers include self-employed individuals who cannot qualify for a traditional mortgage using their W-2s, real estate investors, and borrowers who have recovered from credit events such as a foreclosure or bankruptcy less than seven years ago.
The opportunity for originators is significant based on the population of potential Non-QM borrowers:
As of January 2023, there were 16 million self-employed workers in the U.S. (Bureau of Labor Statistics), a portion of whom could be Non-QM loan candidates.
Over one-quarter of home purchases were investor transactions last year (CoreLogic). Many real estate investors rely on DSCR cash flow loans to build their portfolios.
In the U.S., there are over 17 million real estate investors who manage approximately 49.5 million units (U.S. Census).
Promoting Non-QM products to these borrowers might seem like a challenge to originators just entering the space. The fact is it can be quite easy. The key is to partner with a well-experienced Non-QM lender that offers training, resources and a specialized operations team proficient in mitigating risk with Non-QM loans. Many originators learn Non-QM simply by closing their first Non-QM loan and working closely with an expert in the space. By continuing the partnership, originators will soon understand where to find and actively prospect for Non-QM borrowers.
Originators new to Non-QM often are concerned with the risk associated with Non-QM loans. It is prudent to choose a Non-QM partner with a long-standing record in successfully mitigating risk that has a top-notch operations team. All lenders are subject to the rules and standards set forth by Dodd-Frank and the Consumer Financial Protection Bureau (CFPB). Understanding the crucial role of an operations team specializing in Non-QM can help dispel the misperceptions.
Non-QM lending partners can train originators to assess borrowers’ qualifications and offer loans with the appropriate guardrails in place. Among the products they offer and educate on include:
Bank Statement Loans: These loans use 12 or 24 months of personal or business bank statements to help verify income in lieu of tax returns. For example, many borrowers who own a business implement a tax strategy that under-represents their ability to qualify for a traditional mortgage on a home they can well afford. A Bank Statement loan offers a solution to verify their income and achieve their homeownership goals.
Debt Service Coverage Ratio (DSCR) loans: DSCR cash flow loans empower business purpose borrowers to finance rental properties. This product is ideal for real estate investors who would like to purchase a single-family or multi-unit rental for income purposes with a quick low hassle close. Common scenarios include real estate investors with over 10 financed properties, meeting the time constraints for a 1031 Exchange transaction, or those wanting to vest in an LLC.
Tighter guidelines around agency loans means that originators need Non-QM to fully serve their borrowers and stay competitive. Non-QM lending partners can help them stay abreast of the latest updates and products they offer to keep the pipelines full in a volatile market. An excellent example are the tightened guidelines surrounding non-warrantable condos. In January of 2022 Fannie Mae and Freddie Mac announced their Temporary Requirements for Condo and Co-op Projects in response to the collapse of Florida’s Champlain South Tower. Later, Fannie Mae permanently adopted the once temporary regulations. As a result, more condos are now deemed non-warrantable. Many Non-QM loan products allow non-warrantable condos which is a game changer for many borrowers purchasing condos and the originators helping them.
Non-QM provides originators hero status simply by offering Non-QM alternative solutions guided and supported by their wholesale Non-QM lending partners.
When originators work with these partners they can expect distinct advantages — many of which start with the operations team.
A risk mitigation mindset: Prudent Non-QM lenders implement robust checks and balances to protect the lending institution and their partners. Though technology aids in flagging potential problems and mitigating risk, it is the lenders’ individual diligence and expertise that matters most.
Staff competence: Top-notch Non-QM lenders ensure that team members possess the necessary skills to review documentation, detect fraud, and understand the intricacies of loan files.
Training: Continuous training for originators and borrowers is vital to keep them informed about available options and to ensure they understand the processes involved. It’s a big plus if they also offer a scenario desk where staff will look at a loan or documentation up-front to make sure it’s viable before a borrower goes under contract.
Lenders’ operational teams should also prioritize:
Manual Reviews: All Non-QM loans are manually underwritten and reviewed, emphasizing the importance of thorough and consistent evaluation by account managers, sales, and underwriting teams.
More checks and balances: A rigorous system of compliance, disclosures, underwriting, closing procedures, and due diligence is maintained to ensure the integrity and accuracy of the loan process.
Training Programs: Extensive training programs should be conducted to acclimate staff to the high standards and detailed processes required in Non-QM lending.
When originators work with wholesale Non-QM lending partners who “live and breathe” Non-QM, they enjoy new growth opportunities despite the state of the market. This is especially true when those partners balance education and responsiveness with a dedicated focus on risk mitigation.
For enterprising mortgage women, Non-QM products offer a promising new source of borrowers and revenues. That’s because the pool of potential borrowers who fall outside of agency requirements who would benefit from a Non-QM loan solution is vast. These borrowers include self-employed individuals who cannot qualify for a traditional mortgage using their W-2s, real estate investors, and borrowers who have recovered from credit events such as a foreclosure or bankruptcy less than seven years ago.
The opportunity for originators is significant based on the population of potential Non-QM borrowers:
As of January 2023, there were 16 million self-employed workers in the U.S. (Bureau of Labor Statistics), a portion of whom could be Non-QM loan candidates.
Over one-quarter of home purchases were investor transactions last year (CoreLogic). Many real estate investors rely on DSCR cash flow loans to build their portfolios.
In the U.S., there are over 17 million real estate investors who manage approximately 49.5 million units (U.S. Census).
Promoting Non-QM products to these borrowers might seem like a challenge to originators just entering the space. The fact is it can be quite easy. The key is to partner with a well-experienced Non-QM lender that offers training, resources and a specialized operations team proficient in mitigating risk with Non-QM loans. Many originators learn Non-QM simply by closing their first Non-QM loan and working closely with an expert in the space. By continuing the partnership, originators will soon understand where to find and actively prospect for Non-QM borrowers.
Originators new to Non-QM often are concerned with the risk associated with Non-QM loans. It is prudent to choose a Non-QM partner with a long-standing record in successfully mitigating risk that has a top-notch operations team. All lenders are subject to the rules and standards set forth by Dodd-Frank and the Consumer Financial Protection Bureau (CFPB). Understanding the crucial role of an operations team specializing in Non-QM can help dispel the misperceptions.
Non-QM lending partners can train originators to assess borrowers’ qualifications and offer loans with the appropriate guardrails in place. Among the products they offer and educate on include:
Bank Statement Loans: These loans use 12 or 24 months of personal or business bank statements to help verify income in lieu of tax returns. For example, many borrowers who own a business implement a tax strategy that under-represents their ability to qualify for a traditional mortgage on a home they can well afford. A Bank Statement loan offers a solution to verify their income and achieve their homeownership goals.
Debt Service Coverage Ratio (DSCR) loans: DSCR cash flow loans empower business purpose borrowers to finance rental properties. This product is ideal for real estate investors who would like to purchase a single-family or multi-unit rental for income purposes with a quick low hassle close. Common scenarios include real estate investors with over 10 financed properties, meeting the time constraints for a 1031 Exchange transaction, or those wanting to vest in an LLC.
Tighter guidelines around agency loans means that originators need Non-QM to fully serve their borrowers and stay competitive. Non-QM lending partners can help them stay abreast of the latest updates and products they offer to keep the pipelines full in a volatile market. An excellent example are the tightened guidelines surrounding non-warrantable condos. In January of 2022 Fannie Mae and Freddie Mac announced their Temporary Requirements for Condo and Co-op Projects in response to the collapse of Florida’s Champlain South Tower. Later, Fannie Mae permanently adopted the once temporary regulations. As a result, more condos are now deemed non-warrantable. Many Non-QM loan products allow non-warrantable condos which is a game changer for many borrowers purchasing condos and the originators helping them.
Non-QM provides originators hero status simply by offering Non-QM alternative solutions guided and supported by their wholesale Non-QM lending partners.
When originators work with these partners they can expect distinct advantages — many of which start with the operations team.
A risk mitigation mindset: Prudent Non-QM lenders implement robust checks and balances to protect the lending institution and their partners. Though technology aids in flagging potential problems and mitigating risk, it is the lenders’ individual diligence and expertise that matters most.
Staff competence: Top-notch Non-QM lenders ensure that team members possess the necessary skills to review documentation, detect fraud, and understand the intricacies of loan files.
Training: Continuous training for originators and borrowers is vital to keep them informed about available options and to ensure they understand the processes involved. It’s a big plus if they also offer a scenario desk where staff will look at a loan or documentation up-front to make sure it’s viable before a borrower goes under contract.
Lenders’ operational teams should also prioritize:
Manual Reviews: All Non-QM loans are manually underwritten and reviewed, emphasizing the importance of thorough and consistent evaluation by account managers, sales, and underwriting teams.
More checks and balances: A rigorous system of compliance, disclosures, underwriting, closing procedures, and due diligence is maintained to ensure the integrity and accuracy of the loan process.
Training Programs: Extensive training programs should be conducted to acclimate staff to the high standards and detailed processes required in Non-QM lending.
When originators work with wholesale Non-QM lending partners who “live and breathe” Non-QM, they enjoy new growth opportunities despite the state of the market. This is especially true when those partners balance education and responsiveness with a dedicated focus on risk mitigation.
For enterprising mortgage women, Non-QM products offer a promising new source of borrowers and revenues. That’s because the pool of potential borrowers who fall outside of agency requirements who would benefit from a Non-QM loan solution is vast. These borrowers include self-employed individuals who cannot qualify for a traditional mortgage using their W-2s, real estate investors, and borrowers who have recovered from credit events such as a foreclosure or bankruptcy less than seven years ago.
The opportunity for originators is significant based on the population of potential Non-QM borrowers:
As of January 2023, there were 16 million self-employed workers in the U.S. (Bureau of Labor Statistics), a portion of whom could be Non-QM loan candidates.
Over one-quarter of home purchases were investor transactions last year (CoreLogic). Many real estate investors rely on DSCR cash flow loans to build their portfolios.
In the U.S., there are over 17 million real estate investors who manage approximately 49.5 million units (U.S. Census).
Promoting Non-QM products to these borrowers might seem like a challenge to originators just entering the space. The fact is it can be quite easy. The key is to partner with a well-experienced Non-QM lender that offers training, resources and a specialized operations team proficient in mitigating risk with Non-QM loans. Many originators learn Non-QM simply by closing their first Non-QM loan and working closely with an expert in the space. By continuing the partnership, originators will soon understand where to find and actively prospect for Non-QM borrowers.
Originators new to Non-QM often are concerned with the risk associated with Non-QM loans. It is prudent to choose a Non-QM partner with a long-standing record in successfully mitigating risk that has a top-notch operations team. All lenders are subject to the rules and standards set forth by Dodd-Frank and the Consumer Financial Protection Bureau (CFPB). Understanding the crucial role of an operations team specializing in Non-QM can help dispel the misperceptions.
Non-QM lending partners can train originators to assess borrowers’ qualifications and offer loans with the appropriate guardrails in place. Among the products they offer and educate on include:
Bank Statement Loans: These loans use 12 or 24 months of personal or business bank statements to help verify income in lieu of tax returns. For example, many borrowers who own a business implement a tax strategy that under-represents their ability to qualify for a traditional mortgage on a home they can well afford. A Bank Statement loan offers a solution to verify their income and achieve their homeownership goals.
Debt Service Coverage Ratio (DSCR) loans: DSCR cash flow loans empower business purpose borrowers to finance rental properties. This product is ideal for real estate investors who would like to purchase a single-family or multi-unit rental for income purposes with a quick low hassle close. Common scenarios include real estate investors with over 10 financed properties, meeting the time constraints for a 1031 Exchange transaction, or those wanting to vest in an LLC.
Tighter guidelines around agency loans means that originators need Non-QM to fully serve their borrowers and stay competitive. Non-QM lending partners can help them stay abreast of the latest updates and products they offer to keep the pipelines full in a volatile market. An excellent example are the tightened guidelines surrounding non-warrantable condos. In January of 2022 Fannie Mae and Freddie Mac announced their Temporary Requirements for Condo and Co-op Projects in response to the collapse of Florida’s Champlain South Tower. Later, Fannie Mae permanently adopted the once temporary regulations. As a result, more condos are now deemed non-warrantable. Many Non-QM loan products allow non-warrantable condos which is a game changer for many borrowers purchasing condos and the originators helping them.
Non-QM provides originators hero status simply by offering Non-QM alternative solutions guided and supported by their wholesale Non-QM lending partners.
When originators work with these partners they can expect distinct advantages — many of which start with the operations team.
A risk mitigation mindset: Prudent Non-QM lenders implement robust checks and balances to protect the lending institution and their partners. Though technology aids in flagging potential problems and mitigating risk, it is the lenders’ individual diligence and expertise that matters most.
Staff competence: Top-notch Non-QM lenders ensure that team members possess the necessary skills to review documentation, detect fraud, and understand the intricacies of loan files.
Training: Continuous training for originators and borrowers is vital to keep them informed about available options and to ensure they understand the processes involved. It’s a big plus if they also offer a scenario desk where staff will look at a loan or documentation up-front to make sure it’s viable before a borrower goes under contract.
Lenders’ operational teams should also prioritize:
Manual Reviews: All Non-QM loans are manually underwritten and reviewed, emphasizing the importance of thorough and consistent evaluation by account managers, sales, and underwriting teams.
More checks and balances: A rigorous system of compliance, disclosures, underwriting, closing procedures, and due diligence is maintained to ensure the integrity and accuracy of the loan process.
Training Programs: Extensive training programs should be conducted to acclimate staff to the high standards and detailed processes required in Non-QM lending.
When originators work with wholesale Non-QM lending partners who “live and breathe” Non-QM, they enjoy new growth opportunities despite the state of the market. This is especially true when those partners balance education and responsiveness with a dedicated focus on risk mitigation.
For enterprising mortgage women, Non-QM products offer a promising new source of borrowers and revenues. That’s because the pool of potential borrowers who fall outside of agency requirements who would benefit from a Non-QM loan solution is vast. These borrowers include self-employed individuals who cannot qualify for a traditional mortgage using their W-2s, real estate investors, and borrowers who have recovered from credit events such as a foreclosure or bankruptcy less than seven years ago.
The opportunity for originators is significant based on the population of potential Non-QM borrowers:
As of January 2023, there were 16 million self-employed workers in the U.S. (Bureau of Labor Statistics), a portion of whom could be Non-QM loan candidates.
Over one-quarter of home purchases were investor transactions last year (CoreLogic). Many real estate investors rely on DSCR cash flow loans to build their portfolios.
In the U.S., there are over 17 million real estate investors who manage approximately 49.5 million units (U.S. Census).
Promoting Non-QM products to these borrowers might seem like a challenge to originators just entering the space. The fact is it can be quite easy. The key is to partner with a well-experienced Non-QM lender that offers training, resources and a specialized operations team proficient in mitigating risk with Non-QM loans. Many originators learn Non-QM simply by closing their first Non-QM loan and working closely with an expert in the space. By continuing the partnership, originators will soon understand where to find and actively prospect for Non-QM borrowers.
Originators new to Non-QM often are concerned with the risk associated with Non-QM loans. It is prudent to choose a Non-QM partner with a long-standing record in successfully mitigating risk that has a top-notch operations team. All lenders are subject to the rules and standards set forth by Dodd-Frank and the Consumer Financial Protection Bureau (CFPB). Understanding the crucial role of an operations team specializing in Non-QM can help dispel the misperceptions.
Non-QM lending partners can train originators to assess borrowers’ qualifications and offer loans with the appropriate guardrails in place. Among the products they offer and educate on include:
Bank Statement Loans: These loans use 12 or 24 months of personal or business bank statements to help verify income in lieu of tax returns. For example, many borrowers who own a business implement a tax strategy that under-represents their ability to qualify for a traditional mortgage on a home they can well afford. A Bank Statement loan offers a solution to verify their income and achieve their homeownership goals.
Debt Service Coverage Ratio (DSCR) loans: DSCR cash flow loans empower business purpose borrowers to finance rental properties. This product is ideal for real estate investors who would like to purchase a single-family or multi-unit rental for income purposes with a quick low hassle close. Common scenarios include real estate investors with over 10 financed properties, meeting the time constraints for a 1031 Exchange transaction, or those wanting to vest in an LLC.
Tighter guidelines around agency loans means that originators need Non-QM to fully serve their borrowers and stay competitive. Non-QM lending partners can help them stay abreast of the latest updates and products they offer to keep the pipelines full in a volatile market. An excellent example are the tightened guidelines surrounding non-warrantable condos. In January of 2022 Fannie Mae and Freddie Mac announced their Temporary Requirements for Condo and Co-op Projects in response to the collapse of Florida’s Champlain South Tower. Later, Fannie Mae permanently adopted the once temporary regulations. As a result, more condos are now deemed non-warrantable. Many Non-QM loan products allow non-warrantable condos which is a game changer for many borrowers purchasing condos and the originators helping them.
Non-QM provides originators hero status simply by offering Non-QM alternative solutions guided and supported by their wholesale Non-QM lending partners.
When originators work with these partners they can expect distinct advantages — many of which start with the operations team.
A risk mitigation mindset: Prudent Non-QM lenders implement robust checks and balances to protect the lending institution and their partners. Though technology aids in flagging potential problems and mitigating risk, it is the lenders’ individual diligence and expertise that matters most.
Staff competence: Top-notch Non-QM lenders ensure that team members possess the necessary skills to review documentation, detect fraud, and understand the intricacies of loan files.
Training: Continuous training for originators and borrowers is vital to keep them informed about available options and to ensure they understand the processes involved. It’s a big plus if they also offer a scenario desk where staff will look at a loan or documentation up-front to make sure it’s viable before a borrower goes under contract.
Lenders’ operational teams should also prioritize:
Manual Reviews: All Non-QM loans are manually underwritten and reviewed, emphasizing the importance of thorough and consistent evaluation by account managers, sales, and underwriting teams.
More checks and balances: A rigorous system of compliance, disclosures, underwriting, closing procedures, and due diligence is maintained to ensure the integrity and accuracy of the loan process.
Training Programs: Extensive training programs should be conducted to acclimate staff to the high standards and detailed processes required in Non-QM lending.
When originators work with wholesale Non-QM lending partners who “live and breathe” Non-QM, they enjoy new growth opportunities despite the state of the market. This is especially true when those partners balance education and responsiveness with a dedicated focus on risk mitigation.
MaxClass is a woman-owned company, and we're offering MWLC members 65% off your continuing education when you use our code WOMENWIN.
MaxClass is a woman-owned company, and we're offering MWLC members 65% off your continuing education. Become a member for our unique code.
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MaxClass is a woman-owned company, and we're offering MWLC members 65% off your continuing education when you use our code WOMENWIN.
MaxClass is a woman-owned company, and we're offering MWLC members 65% off your continuing education. Become a member for our unique code.
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