Non-QM product options are becoming more popular as lenders try to change their strategy in the face of almost no refinancing activity. In light of this, the Executive Vice President of Production at Angel Oak Mortgage Solutions, Tom Hutchens, stated during a recent discussion on non-QM lending that Everyone in the Industry knows how fast rates have gone up this year. As a result, there were predictions of refinances going down, but they went down quickly. Therefore, whenever that occurs and has been observed in recent years, originators hunt for other products, such as non-QM products.
This approach does provide some difficulties for lenders, though. Although there are logistical learning curves, Hutchens emphasizes preconceived notions about non-QM lending, posing the most barrier to lenders. As such, lenders need to be ready and willing to gain adequate knowledge about this industry space properly.
Since 2013, loan originators have been trained in this space, but the fact that non-QM borrowers and non-QM loans are not the subprimes of the pre-financial crisis, she noted, does seem to be a major issue that has emerged over the years. The non-QM borrower is very qualified, despite what most people who haven’t created non-QM loans might believe.
According to Hutchens, Angel Oak has observed numerous lenders entering and leaving the non-QM industry, frequently leaving when refinancing activity increases. Having a trustworthy non-QM partner knowledgeable about all the ins and outs of swift pivots in product strategy is crucial. Hutchens remarked. To read more about the challenges facing lenders in the non-QM loan space, click here.
https://www.housingwire.com/articles/what-originators-may-not-know-about-non-qm-lending/
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind. Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances. Some articles on this site include hypothetical stories, examples, and scenarios created to illustrate concepts and demonstrate the types of situations Note Servicing Center, Inc. handles. Any names, companies, properties, and circumstances in these examples are fictitious or have been anonymized to protect confidentiality, and any resemblance to actual persons or entities is coincidental. These examples do not describe specific clients and do not guarantee any particular outcome. Some content may be created with the assistance of generative AI tools and may contain errors or omissions. While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.