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Non-QM lenders see optimism
After skyrocketing housing prices were tamped down by rising interest rates, non-QM lenders are finding reason for optimism about the future of the industry
Jason Biegel
Change Wholesale
Industry experts
Tom Davis
Deephaven Mortgage
Will Fisher
LoanStream Mortgage
Trevor Baldwin
Baldwin Risk Partners
Jason Biegel is an industry-leading residential mortgage professional, with over 30 years of experience developing and overseeing whole-loan business platforms. Jason currently applies his skill set serving as the chief operating officer of Change Lending. He previously served as the business leader of the mortgagee loan platforms for Angelo Gordon (2013–2020) and Lone Star Fund (2008–2012). Jason began his career at Bear Stearns, where he held the role of senior managing director responsible for residential mortgage whole-loan trading and servicing. Jason has a bachelor’s degree from Rutgers University.
Change Wholesale
Jason Biegel
Tom Davis manages Deephaven’s wholesale, non-delegated and correspondent non-QM/non-agency channels. He started work at Deephaven in May of 2022. He served as the EVP – head of TPO production (wholesale and correspondent) at First Guaranty Mortgage Corporation from July 2021 to May 2022, having served as EVP correspondent lending and SVP correspondent lending. Before his 2016 start at First Guaranty, he was division vice president correspondent sales west/northeast at Finance of American Mortgage LLC starting in 2014. From 2007 to 2014, he was correspondent rural housing account executive with Chase.
Deephaven Mortgage
Tom Davis
Will is EVP of non-QM & jumbo lending at LoanStream Mortgage and has over 20 years of industry experience. Will has served in various high-profile capacities at major lenders within the industry, including Citadel Servicing Corp (now Acra Lending), Arc Home, First Street Financial, Equifirst ,and LendingTree. He has been a key figure in shaping the non-QM segment since 2013, building national sales platforms, marketing/branding initiatives, creating/enhancing loan programs, and delivering funded loan volume for wholesale, retail, and correspondent channels. At LoanStream Will continues to refine the non-QM platform, process, and leading product initiatives to help the company deliver preferred/proprietary non-QM programs for mortgage brokers, bankers, business partners, and customers. LoanStream is committed to advancing their mission as “the one lender” and non-QM program innovator.
LoanStream Mortgage
Will Fisher
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partners
Trevor Baldwin
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Vault Plus Mortgage and Finance Consultancy
David Merison
“We are looking for ways to continue to expand our volume and client base”
Jason Biegal,
chief operating officer, Change Wholesale
THE LAST YEAR has seen a lot of turmoil for the non-QM space, thanks to a cooling real estate market and rising interest rates.
But while the market is cooling, cooler heads are prevailing, having learned lessons from the past three years.
“One thing we learned in COVID is, it’s extremely important to have multiple exits,” said Tom Davis, chief sales officer, Deephaven Mortgage, on the most recent episode of Mortgage Professional America TV. “Early on in 2022 we developed multiple exit strategies outside of securitization.”
Being diversified in how they executed their business “really helped us,” Davis said, especially when it came to “consistent liquidity.” Other companies struggled, but “for us it was business as usual.”
Looking to the near future, Will Fisher, executive vice president of non-conforming, LoanStream Mortgage, had a prediction.
“In the prime agency space, where some companies may not be well capitalized, or have high operating expenses, they will either be consolidated or close altogether,” said Fisher. “Only the strongest and most diverse are going to survive. I think some, but not many, non-QMs will disappear from the market altogether.”
Fisher added that secondary investors are “looking for higher yields.” He had some advice for his fellow non-QM lenders and brokers. “Our focus needs to be on product breadth, operational efficiency, and performance. It’s a balancing act,” said Fisher.
“I think some, but not many, non-QMs will disappear from the market altogether, leaving the best operators available to make loans”
Will Fisher, executive vice president of non-conforming, LoanStream Mortgage
“There’s plenty of opportunity. You create your own economy. There is some positive light ahead of us”
Tom Davis,
chief sales officer, Deephaven Mortgage
How are non-QM lenders assuring their brokers, and trying to stand out in this market?
“It’s all about consistency and being stable,” said Fisher. That is why his company has “taken a less reactive, wait-and-see approach when big moves are made” in the secondary side of the business. His company “doubled down” on increasing non-QM capacity.
In spite of the changes in the past year or so, there is room for cautious growth, according to one panellist.
“In 2022, everyone saw a lot of volatility – a tightening of the credit box,” said Biegel. Since then, it has been “kind of ‘steady as she goes.’”
For Biegel, a lot of the production profile rests on “secondary market takeout. Where is their appetite and where is their head at on everything from what the borrower behaviour is today to … what’s really going on with housing prices? We are always
Davis again returned to census data, which showed just how much potential there is for those looking at non-QM.
“There are 16 million self-employed people in the United States. They account for over 20 million businesses. There are 17 million real estate investors in the United States. Those investors account for 46 million units,” he said.
And among the investor class, there are also “referral partners” too, like self-employed roofers, electricians, home inspectors, attorneys, and realtors, who can also help spread the non-QM word.
“There’s plenty of opportunity,” said Davis. “You create your own economy. There is some positive light ahead of us.”
Biegel agreed that “there’s no lack of opportunity in the marketplace. It is a target-rich environment that we are operating in.”
Jason Biegel, chief operating officer at Change Wholesale, agreed with Davis that “you want a diversity of exits,” because during the pandemic, “a lot of folks got caught with short-duration funding.”
For Biegel, having partners who are in it for the long haul is crucial. “You want to have funding partners who are willing to roll with the punches and understand the mortgage space and that liquidity is not always on the same schedule that you’d like it to be and may not match your terms,” Biegel said. “You don’t have the rate term re-fi opportunity that you had during the lows of interest rates during COVID. But looking ahead, I think it’s a pretty robust marketplace.”
He agreed with Fisher that there will be consolidation, with players entering and leaving the market. He hopes that this time will pass quickly, since “less competition is better for those who survive.”
looking to make sure that loans perform well. It’s an ongoing task.”
When Fisher sees a product that is being over-originated, “we investigate our offering versus competitors' to see if we are too lenient, then adjust. It is a balancing act. It has to be,” he said.
One area that LoanStream is excited about is its one-year, self-employed product.
“It’s literally one year of self-employment,” said Fisher of the product, launched nine months ago. The company has another program that allows a lender to upgrade from one qualifying credit grade to another, called Upgrade ONE.
Spotlight on US Mortgage Market
Value of residential mortgage debt in the US in the first quarter of 2022, according to the Federal Reserve Bank of New York (New York Fed)
$11.18trn
Davis noted that there are 16 million self-employed people in US, and 17 million real estate investors. This combined pool of 33 million people represents potential books of business that the non-QM market can access. America also has about 17 million veterans, who, by comparison, are able to tap into VA (Veterans Administration) housing programming.
Davis added that when it comes to housing demand, there are 50 million 28-to-38-year-olds in the US.
“Household formation should remain robust,” Davis said. “We are bullish in this space.”
“We are in expansion mode,” said Fisher, with the company recently opening a new correspondent division and operation center in Texas.
Biegel explained that his company is different in that it is a community development financial institution.
“We are expected not only to be profitable for our investors, but at the same time we also service certain target markets that are underserved and underbanked in the US,” Biegel explained. “We are looking for ways to continue to expand our volume and client base.”
Deephaven entered the non-QM space in 2012, and Davis himself has done more than 25 securitizations.
“We invest in the platform and our brokers,” said Davis. “What makes us unique is our capital structure – the ability to securitize a whole loan portfolio into funds.” The helps “provide our customers with consistent, reliable liquidity.”
Read on
“If you become a master of your trade and become an expert at it, people will line up to do business with you,” said Davis. “Once they become comfortable, they start originating the product.”
Fisher chuckled at the prospect of anyone having down-time in his industry, but, should such a lucky moment occur, he advised that people could update their lists of clients whom they have financed over the last three years, and continue reaching out to real estate agents and to other non-QM lenders who have been around for six to eight years. Deepening business relationships can be an opportunity to leverage your knowledge out in the community.
“That will be what keeps those loans coming your way,” said Fisher. He also advocated working with clients on diversifying their investment holdings, and on tax strategies to preserve wealth.
“Housing is very strong and may continue to be strong, because there still is a lack of availability,” Fisher said.
In the final minutes of the broadcast, the there was a real excitement at the possibility that the new market would hold.
“[We are] not touching the majority of the eligible borrowers out there. Now is the time to go,” said Biegel. “The time is now. We are ready to help.”
“The gun went off. Get moving,” agreed Fisher. “Today’s high rates are tomorrow’s refinance boom.”
Change Wholesale has a range of products as diverse as your borrowers to help you serve more people than your competitors. As a CDFI, we create our own portfolio of products and guidelines that are exempt from complex underwriting rules and regulatory restrictions. Instead, we make smart credit decisions and use leading-edge technology to increase the number of loans you can close.
Find out more
LoanStream Mortgage is the one lender with loan programs to help you stand out from the competition with conventional, government, and non-QM (NonQ). We’ve been around since 2001 and operate on the principles of trust, knowledge, and innovation. We are dedicated to developing and delivering a combination of competitive rates and products to help our business partners expand their portfolios and reach more clients. Combined with our fast turnaround times and excellent customer service, this makes us the one to call. We provide value to our clients through our knowledgeable AEs, state-of-the-art broker portal technology, and our ability to meet commitments we make to brokers. Join us and be the one to call for your clients.
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Our mission is clear and simple: to provide innovative mortgage products to the millions of borrowers underserved by the traditional mortgage industry. Deephaven champions those mortgage borrowers whose independence, entrepreneurial drive, and determination are often the very reason why they can’t qualify for traditional loans. Using ingenuity, supported by common-sense underwriting, we continuously and responsibly innovate new mortgage products and programs that put homeownership within reach of millions of borrowers and investors who need and deserve financing.
Find out more
Non-QM lenders see optimism
After skyrocketing housing prices were tamped down by rising interest rates, non-QM lenders are finding reason for optimism about the future of the industry
Read on
Trevor Baldwin
Baldwin Risk Partners
Will Fisher
LoanStream Mortgage
Tom Davis
Deephaven Mortgage
Jason Biegel
Change Wholesale
Industry experts
Jason Biegel is an industry-leading residential mortgage professional, with over 30 years of experience developing and overseeing whole-loan business platforms. Jason currently applies his skill set serving as the chief operating officer of Change Lending. He previously served as the business leader of the mortgagee loan platforms for Angelo Gordon (2013–2020) and Lone Star Fund (2008–2012). Jason began his career at Bear Stearns, where he held the role of senior managing director responsible for residential mortgage whole-loan trading and servicing. Jason has a bachelor’s degree from Rutgers University.
Change Wholesale
Jason Biegel
Tom Davis manages Deephaven’s wholesale, non-delegated and correspondent non-QM/non-agency channels. He started work at Deephaven in May of 2022. He served as the EVP – head of TPO production (wholesale and correspondent) at First Guaranty Mortgage Corporation from July 2021 to May 2022, having served as EVP correspondent lending and SVP correspondent lending. Before his 2016 start at First Guaranty, he was division vice president correspondent sales west/northeast at Finance of American Mortgage LLC starting in 2014. From 2007 to 2014, he was correspondent rural housing account executive with Chase.
Deephaven Mortgage
Tom Davis
Will is EVP of non-QM & jumbo lending at LoanStream Mortgage and has over 20 years of industry experience. Will has served in various high-profile capacities at major lenders within the industry, including Citadel Servicing Corp (now Acra Lending), Arc Home, First Street Financial, Equifirst ,and LendingTree. He has been a key figure in shaping the non-QM segment since 2013, building national sales platforms, marketing/branding initiatives, creating/enhancing loan programs, and delivering funded loan volume for wholesale, retail, and correspondent channels. At LoanStream Will continues to refine the non-QM platform, process, and leading product initiatives to help the company deliver preferred/proprietary non-QM programs for mortgage brokers, bankers, business partners, and customers. LoanStream is committed to advancing their mission as “the one lender” and non-QM program innovator.
LoanStream Mortgage
Will Fisher
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partner
Trevor Baldwin
Non-QM lenders see optimism
After skyrocketing housing prices were tamped down by rising interest rates, non-QM lenders are finding reason for optimism about the future of the industry
Read on
Will Fisher
LoanStream Mortgage
Tom Davis
Deephaven Mortgage
Jason Biegel
Change Wholesale
Industry experts
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partners
Trevor Baldwin
Will is EVP of non-QM & jumbo lending at LoanStream Mortgage and has over 20 years of industry experience. Will has served in various high-profile capacities at major lenders within the industry, including Citadel Servicing Corp (now Acra Lending), Arc Home, First Street Financial, Equifirst ,and LendingTree. He has been a key figure in shaping the non-QM segment since 2013, building national sales platforms, marketing/branding initiatives, creating/enhancing loan programs, and delivering funded loan volume for wholesale, retail, and correspondent channels. At LoanStream Will continues to refine the non-QM platform, process, and leading product initiatives to help the company deliver preferred/proprietary non-QM programs for mortgage brokers, bankers, business partners, and customers. LoanStream is committed to advancing their mission as “the one lender” and non-QM program innovator.
LoanStream Mortgage
Will Fisher
Tom Davis manages Deephaven’s wholesale, non-delegated and correspondent non-QM/non-agency channels. He started work at Deephaven in May of 2022. He served as the EVP – head of TPO production (wholesale and correspondent) at First Guaranty Mortgage Corporation from July 2021 to May 2022, having served as EVP correspondent lending and SVP correspondent lending. Before his 2016 start at First Guaranty, he was division vice president correspondent sales west/northeast at Finance of American Mortgage LLC starting in 2014. From 2007 to 2014, he was correspondent rural housing account executive with Chase.
Deephaven Mortgage
Tom Davis
Jason Biegel is an industry-leading residential mortgage professional, with over 30 years of experience developing and overseeing whole-loan business platforms. Jason currently applies his skill set serving as the chief operating officer of Change Lending. He previously served as the business leader of the mortgagee loan platforms for Angelo Gordon (2013–2020) and Lone Star Fund (2008–2012). Jason began his career at Bear Stearns, where he held the role of senior managing director responsible for residential mortgage whole-loan trading and servicing. Jason has a bachelor’s degree from Rutgers University.
Change Wholesale
Jason Biegel
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Rapid-fire, optimistic responses
Published 17 June 2023
Value of commercial real estate debt in the US in 2021, according to commercial real estate provider Trepp
$5trn
Percentage of combined household debt attributable to mortgages in the first quarter of 2022, according to the
New York Fed
71%
Number of residential loans issued by mortgage lenders in the first quarter of 2022 – the biggest downward trend since 2024, according to ATTOM
2.71m
Average balance for a first mortgage in 2021, up from $278,725 in 2020, according to the Mortgage Bankers’ Association
$298,324
Value of mortgages refinanced in 2021, a slight decrease from $2.8 trillion in 2020, according to mortgage technology and data provider Black Knight
$2.7trn
Number of reverse mortgages originated in 2021, according to reverse mortgage data provider Reverse Market Insight
52,900
Percentage of borrowers with conventional mortgages who paid private mortgage insurance in 2021, according to the Urban Institute
c. 22%
Source: Bankrate.com
US house price index
Source: Federal Housing Finance Agency
House prices rose across America in January 2023, up 0.2% from December 2022
House prices rose 5.3% from January 2022 to January 2023
House price differences were not uniform across the country from December 2022 to January 2023. Prices were down 0.6% in the Pacific census division, but were up 2% in New England
For the 12-month period ending in early 2023, prices in the Pacific region were down 1.5%, but were up 9.6% in the South Atlantic division
Note: As of March 2023
Self-employed, and other markets for expansion
Even brokers need reassurance
Market’s changing assessment criteria
When times are quiet, it’s a good time to get busy.
One way Deephaven keeps busy is through 150 webinars for clients, with 16 different modules, covering everything from product deep-dives to how to source loans.
Deephaven is “big in investing time in our partners and making them experts,” said Davis. He pointed out that 70 percent of originators who take part in Deephaven’s webinars have never originated a non-QM loan.
If an originator has not heard of a non-QM loan, it is likely that their realtors and other partners have not heard of non-QM loans either, or worked on one.
Making the most of a quieter period
Advice for the road ahead
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Copyright © 1996-2023 KM Business Information US, Inc.
Newsletter
About us
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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.
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BEST IN MORTGAGE
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TV
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