Searching for Loan Growth in 2017? There’s Only One Place Left to Look
The results are in, and a massive shift in lending practices are coming to reshape your book of business.
Agency loan growth has become stagnant, and refinances are going away almost entirely due to the surge in interest rates following the election and the upcoming 2017 Federal Reserve rate hikes. Considering agency lending and refinancing are the primary growth channels for a massive portion of the mortgage origination industry, where can lenders turn to spur loan growth?
The answer is non-agency, or non-QM, products. In fact, this is the only growing segment of the retail mortgage origination industry. There are several reasons for this phenomenon, the first being the massive untapped pool of prospective borrowers squeezed out of the agency market.