April 2021’s figures are down a slight 2.28 percent from the previous month, during which the number of self-employed in the U.S. It simply means they need an alternative solution.Ģ.) Self-Employed Borrower Segment is Underserved & GrowingĪccording to the US Bureau of Labor Statistics 1, as of April 2021, the number of self-employed people in the U.S. But this does not mean they are a greater risk. The fact is a significant number of borrowers are not good candidates for conventional loans for a variety of reasons.
Since that time, the demand for mortgages has grown even more but lenders have not met that demand at the same fast pace.īy meeting the needs of borrowers who don’t fit neatly into conventional loans, such as the self-employed, foreign nationals, credit challenged and those who need higher-balanced loan amounts, lenders can continue to expand their businesses. We’ve identified four reasons why lenders who want to pursue continued growth during the second half of 2021 should get into or back into non-QM lending.īefore the pandemic, there was a considerable amount of demand that went unfulfilled in the mortgage marketplace. Today non-QM lending is making a comeback and growing quickly.
However, this situation did not last very long. With heightened risk in the near future, warehouse lenders closed their lines for non-QM products, which made it impossible for originators to fund them. This resulted in capital markets abruptly closing. In an instant, the ratings agencies stopped rating non-QM securitizations while they amended their models for the new economic environment. Investors, rating agencies and lenders had no data that could help them determine how loans would perform with the sudden changes that occurred throughout the workforce. No one knew how COVID-19 would affect the economy. In the summer of 2020, a lot of lenders were prepared to walk away and give up on this profitable business. The resurgence in popularity of these products is due, in part, to the endurance of the mortgage industry. And many are finding it in the non-QM marketplace. Learn more today about how we can help grow your business.With refinances slowing and rates climbing, a growing number of lenders are realizing now is the time to look for new business wherever they can find it. That’s what we do and why you should consider Verus Mortgage Capital as your non-QM lending partner. Purchases non-agency loans quickly and consistently - almost $5 billion to date.Forges solid partnerships with correspondent lenders - we’re over 100 strong and growing.
#NON QM LENDING HOW TO#
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