The Letter X – Issue #24
The non-qualified mortgage (non-QM) market is an important section of the industry that offers a powerful set of tools for brokers and Realtors to expand their business and help creditworthy borrowers. This weekly column is dedicated to keep you informed on all things non-QM to help you stay on top of the changes, updates and news to keep you in the know. I’m Tom Hutchens, executive vice president of production at Angel Oak Mortgage Solutions in Atlanta, Georgia, a wholesale lender with a primary focus on non-QM.
Short recap: Following the COVID-19 outbreak, non-QM originators reintroduced products with revised guidelines reflective of new economic realities. The reintroduction of non-QM products was met with an increase in demand and the industry has hardly looked back since. According to the Mortgage Bankers Association (MBA), during the week of September 23, 2020, new purchases have boomed across the mortgage industry and for non-QM, almost 75% of transactions are purchases. The MBA also reported purchase activity outpaced 2019 for the 19th consecutive week.
Low rates and red-hot demand have helped revive the housing market. Non-QM can be a useful tool as the homebuying season continues into the fall, especially as the refi boom winds down. Lately we have seen many scenarios where borrowers just miss qualifying for Agency loans and are turned away. The deal was brought to us to save and we got it closed. Take the time to learn more about non-QM and how you can close more loans using these products.