The new non-arc from Arc HomeQM Regional Vice President Matthew Miller (pictured) shares his thoughts on the market and its future.
Q: How many years have you been in the mortgage industry and at Arc Home?
A. I have been in the mortgage industry for nearly 20 years and have had a wide variety of roles during that time including loan officer, account manager, sales manager and currently serving as the regional vice president of non-QM at Arc Home. I joined Arc Home in April 2021 with the opportunity to join a growing presence in the wholesale and correspondence credit space.
Q: What do you expect for the mortgage market in 2021?
A. Nobody can predict with certainty what the mortgage market will hold, but along with everyone else, I expect interest rates will generally be higher by the end of the year. At the same time, we experienced tremendous volatility in figuring out how the economy will perform once the problems related to COVID-19 subside. I think you will see that lenders limit their focus to certain strategies that they believe will enable them to succeed in what is likely to be a more purchase-oriented environment with higher interest rates. I believe the non-QM market is an area of real growth as we enter the second half of 2021 and build around 2022.
Q: How is Arc Home positioned in what is expected to be a challenging market?
A. I think Arc Home is incredibly well positioned. The best possible customer experience is our priority and we have continued to invest in that philosophy. We believe this approach leads to long-term, satisfied and loyal wholesale and correspondence customers. Combine that with our leading position in non-QM products, which we see as a distinct advantage when the market transitions to a more buy-oriented one, and Arc Home is positioned to succeed.
Q: How do you see the development of non-QM in 2021?
A. I see the non-QM market segment as the underserved segment of the home loan market. Non-QM is a nuanced product that requires a high level of expertise to provide proper guidance and support to brokers and correspondents, and Arc Home has a strong advantage in this regard. I expect technology will continue to be a bigger part of the process, improving cycle times and providing more immediate visibility into creditworthiness and the decision-making process.
Q: How is Arc Home positioned to help brokers and correspondents grow their business using the non-QM suite of products, even though overall origins are expected to decline year on year?
A. Speed and accuracy are critical in this product area. When we have our own line of products like Arc, we can make decisions quickly and fund loans. Exceptions are common with this set of products and we can make decisions quickly and provide transparency to our customers and their borrowers in no time. Unlike most of our competitors in this area, we don’t need to consult a third party for due diligence before financing the loan. We continue to invest in process improvement and productivity, both in our customer-facing applications and behind the scenes in our operations. All of this makes for a great customer experience. Combined with competitive prices and product eligibility, we can help brokers and correspondents offset lower refinancing volumes.