Due to increasing interest rates, agency loan originations are down dramatically this year. Fannie Mae has reduced its forecasted number of single-family mortgage originations for 2022 from $3 trillion to $2.8 trillion. As a result, many brokers resort to non-QM to boost their income as agency activity declines. According to Keith Lind, the CEO of Acra Lending, many brokers and loan officers are familiar with the business strategy of receiving leads and pursuing them. This paradigm may have served us well for the past two years, but it is time to change.
Lind suggested that brokers target the relevant people using sites like LinkedIn and reach out to new contacts via conferences as strategies to reach out to more new borrowers with non-QM products. Reaching out to persons who work with non-QM borrowers, such as real estate brokers and CPAs who prepare tax returns for self-employed people, is one way to get started.
Another important facet of non-QM lending performance is selecting the correct lending partner. Also, two of the most important items for brokers to become familiar with are loans for self-employed borrowers and investor loans. The latter enables investors to get a mortgage depending on their cash flow.
Additionally, Lenders’ efforts to discover these groups of people and create a good, clear narrative that sells them on the items they offer are what drives their businesses’ turnovers. Finally, because many 1099 consumers are unaware of their alternatives, loan brokers should endeavor to organize group meetings to educate potential borrowers on the benefits of buying a home with a non-QM loan. To read more about this, click here.
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