Why You Should Be Doing Non-QM and How to Choose the Right Lender
Non-QM type loans were completely unavailable post-crisis. When we started in 2011, mortgage professionals worried it was risky. There were people who said they would never touch it and those who sat back and waited to see what would happen. Pioneers who knew these loans were the answer to a thriving mortgage industry believed in it enough to move past the negative stigma. The reason? The simple fact that there is a significant population of people who can prove the ability to repay a home loan who cannot qualify based on conventional guidelines.
Self-employed, Millennials, jumbo borrowers and those who recovered from a credit event can be worthy borrowers financially responsible to take on a mortgage. Without serving these people, the mortgage industry cannot thrive. This is most likely why non-QM is the only segment in the mortgage industry reporting gains in volume month over month and year-over-year. Angel Oak Mortgage Solutions crushed it in 2018, offering non-QM products. These mortgages were good, solid performing loans. According to FitchRatings, “Of the $4.3 billion and roughly 11,000 loans securitized since 2015 where loan-level performance data is publicly available, only eight loans have entered foreclosure.
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