Non-Qualified Mortgage (non-QM) is a financial product that is becoming increasingly popular in the mortgage industry. It allows lenders to provide mortgages to borrowers who may have difficulty obtaining conventional mortgage financing due to meeting complicated requirements or a weakened credit score.
Non-QM gives lenders a unique opportunity to grow their customer base and revenue revenue potential, as well as replace lost volume due to missed opportunities. Borrowers that may benefit from a non-QM loan include self-employed individuals, borrowers who have experienced recent financial reversals, non-traditional credit histories, and borrowers who are previous homeowners that have difficulty being approved for a mortgage. Additionally, non-QM can provide more flexible underwriting guidelines, such as no credit score requirements or adjustable loan terms that are tailored to the needs of the borrower.
Key elements of this text:
• Expand the pool of qualified prospects for lenders – Non-QM can provide more flexible underwriting guidelines that can reach additional prospective borrowers.
• Replace lost volume – Non-QM provides an opportunity to replace lost revenue from missed opportunities.
• Types of eligible borrowers – Non-QM loans are often an ideal loan product for self-employed individuals, those with weakened credit scores, non-traditional credit histories, and previous homeowners.
• Flexible underwriting – non-QM offers the additional benefit of loosen guidelines and adjustable loan terms tailored to the borrower’s needs.
You can read this full article at: https://www.housingwire.com/articles/opinion-harnessing-non-qm-loans-as-refinancing-volume-dwindles/(subscription required)
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