Why it’s still important to offer non-QM products
Non-QM lending took a brief pause earlier this year due to the pandemic causing a flight to cash in the bond market, but the non-QM borrowers and investors haven’t disappeared.
While 2020 has seen record volumes, low rates and profits, originators understand that’s not going to last forever. According to Tom Hutchens, EVP of Production at Angel Oak Mortgage Solutions, this is a great opportunity for an originator to build their non-QM expertise and build that purchase market.
The top non-QM product right now is the bank statement loan, for quality, self-employed borrowers whose tax returns don’t reflect their ability to repay a mortgage. Angel Oak also has a professional investor loan product, where they qualify the borrower based on the property and the income that the property will generate rather than the investor’s income.
In the future, Hutchens anticipates that non-QM products for borrowers with credit blemishes will also be in high demand.
For more information on Angel Oak’s non-QM lending, visit their site here.
The post Why it’s still important to offer non-QM products appeared first on HousingWire.