Why non-QM is a bridge
IN Partnership with
Wall Street and loan officers have their place, but both come at non-QM mortgages in different ways. Industry leader Robert Senko offers ACC Mortgage as a link between the two
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I FREQUENTLY do webinars and speak at conferences.
My audiences have been populated by newbie loan officers and legends of the industry like Rob Grosser, former president of CityScape, one of the pioneers of the early ‘90s B&C market. Part of my job is to be a promoter, teacher, and underwriter of non-QM.
Everyone wants to know the secret sauce of non-QM.
ACC (All Credit Considered) Mortgage is celebrating 24 years of service this year. Operating in more than 29 states across the country, it sticks to simple principles – superior service, a complete financial review, and bettering the financial position of the borrower and the community. This has led to it closing billions of dollars in loans over the years. It takes pride in closing loans that no-one else can based on its philosophy, experienced and service-oriented employees, and a commitment to its customers and mortgage professional partners. At ACC, commitment to the customer comes first.
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Non-QM’s post-pandemic bounce
A report by CoreLogic stated that the non-QM share of total mortgage counts has doubled from its lowest level in 2020, at 2% of the market, to about 4% of the first-mortgage market in 2022
“Respectfully, neither Wall Street nor loan officers fully understands non-QM”
Robert Senko,
ACC Mortgage
lived through rate swings and real estate booms and busts will tell you they do. The reality is that Wall Street is the same group that created 100% stated income loans and believed it was a viable product. Loan officers typically focus their attention on the cheapest rates and fastest process.
ACC Mortgage is the bridge. Entering our twenty-fifth year of doing nothing but non-QM, there is no other company that can claim our longevity and uninterrupted lending since 1999.
When you break it down to the simplest reality, Wall Street wants interest-bearing mortgages and loan officers want to lend money to their clients. The job of the wholesale lender is to be the intermediary between these two parties. With our nearly quarter-century of experience, ACC crafts products that will help loan officers offer a solution to their clients with the sharpest rates, while providing Wall Street “investments”
that offer safety and soundness. ACC needs to offer an experience for loan officers and brokers to process their loans efficiently, and we need to be able to package our loans to be sold on the secondary market.
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Published 16 October 2023
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“ACC crafts products that will help loan officers offer a solution to their clients with the sharpest rates”
Robert Senko,
ACC Mortgage
CoreLogic also found that the average credit score of homebuyers with
non-QM loans in 2022 was 771, compared to 776 for homebuyers with qualified mortgages, and 714 for government loans
The average LTV ratio for borrowers with non-QM loans was 76%, compared to 77% for borrowers
with qualified loans
However, the average DTI ratio for homebuyers with non-QM loans was higher when compared to borrowers with qualified mortgages
Source: CoreLogic
Source: Lendingtree.com
Americans owe $12.01 trillion on 83.6 million mortgages
Latest 2023 mortgage statistics
Mortgages represent 70.4% of consumer debt in the US
Americans owe $340 billion on 13.1 million home equity lines of credit (HELOC)
Outstanding HELOC debt represents 2% of US consumer debt
Americans originated $716.9 billion in new mortgage debt in the first half of 2023
4.6% of Federal Housing Administration loans are seriously delinquent
There were 137,280 new foreclosures in the 12 months ending on June 30, 2023
As of May 2023, 2% of mortgages, or 1.2 million residential properties, are “underwater”
If you talk to Wall Street guys, they will talk about data, metrics, HPA, the Fed, the bond market, etc.
Loan officers will talk about payment shock, realtor fear, borrower apprehension, program confusion, turn times, etc.
Respectfully, neither Wall Street nor loan officers fully understand non-QM. Of course the multi-trillion-dollar firms will flex their Ivy League diplomas and fancy spreadsheets and tell you they do. The 25-year veteran loan officers who have
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ACC (All Credit Considered) Mortgage is celebrating 24 years of service this year. Operating in more than 29 states across the country, it sticks to simple principles – superior service, a complete financial review, and bettering the financial position of the borrower and the community. This has led to it closing billions of dollars in loans over the years. It takes pride in closing loans that no-one else can based on its philosophy, experienced and service-oriented employees, and a commitment to its customers and mortgage professional partners. At ACC, commitment to the customer comes first.
If you talk to Wall Street guys, they will talk about data, metrics, HPA, the Fed, the bond market, etc.
Loan officers will talk about payment shock, realtor fear, borrower apprehension, program confusion, turn times, etc.
Respectfully, neither Wall Street nor loan officers fully understand non-QM. Of course the multi-trillion-dollar firms will flex their Ivy League diplomas and fancy spreadsheets and tell you they do. The 25-year veteran loan officers who have
Copyright © 1996-2023 KM Business Information US, Inc.
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Terms & Conditions
Contact Us
Sitemap
RSS
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
resources
US
CA
AU
NZ
UK
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Terms & Conditions
Contact Us
Sitemap
RSS
Copyright © 1996-2023 KM Business Information US, Inc.
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
resources
US
CA
AU
NZ
UK