All but the most disciplined Mortgage professionals spent most of the past year on the refinancing business. There is no shame in that. If the phone is ringing on slam dunk deals for solid commissions, then who wouldn’t go after that money? The problem was that it was easy to get a tunnel view now, to focus on the service in demand while avoiding some of the real estate agent relationships that are so important to a consistent buy deal. However, in the last month this landscape has changed.
“What happened to the agencies’ refi business is that prices went up and volume went down. Everyone in the market knew this was coming, the only question was when. Well, it seems that ‘when’ is now, ”said Tom Hutchens (pictured), Executive Vice President of Production at Angel Oak Mortgage Services. “Originators have good intentions when it comes to maintaining broker relationships and buying business, but it’s difficult to do that when the refi business is booming. If the volume of refinancing drops, now is the time for the originators to revive those broker relationships, as increasing buying activity will be key to their success for 2021 and beyond. “
Hutchens noted that we are not only entering a hot buy market, but also a recreational market. So many Americans have been financially affected by the pandemic and they have scars on their credit reports and tax returns that could push them out of the narrow confines of agency lending guidelines. When these people get back on their feet, they’ll look for homes and ask realtors what they can do. Hutchens believes that mortgage professionals with a solid understanding of non-QM Lending can provide the answers brokers and borrowers need now.
in the a new guide from Angel Oak, Hutchens and the Angel Oak team explain how non-QM loans can enable your broker partners to secure more business, helping originators differentiate themselves in a highly competitive marketplace. The effort is to educate brokers about the non-QM options available to home buyers that don’t fit in an agency box. If brokers ask their clients some pre-qualifying questions, they can work with a non-QM-savvy creator to offer a more creative solution.
Currently, brokers are bombarded with emails and calls from creators wanting their referral business. However, Hutchens noted that most of these originators only promised promising expertise in relation to agency loans. Well, thousands of other creators are doing exactly the same thing. Instead of joining the crowd, Hutchens believes an originator can get noticed by saying, “Sure, I can take out a loan for your agency-qualified clients, but I can also take out a non-QM loan for the small business owner you are rejecting had to last week. ‘
Between the financial scars of COVID and the rise of the gig economy, more and more borrowers are falling outside of strict agency lending guidelines. Real estate agents see this business every day, but they likely don’t know it can be captured. When a Mortgage professional When informed of non-QM, they assemble a sales force from their broker partners who work in lockstep with them to close deals for this rapidly growing segment of borrowers.
When the creators followed this strategy, Hutchens stated that they can work closely with Angel Oak Become an expert on non-QM loans. As the largest non-QM lender with deep institutional knowledge and direct connections to the capital markets, Angel Oak offers a wealth of expertise that originators and their broker partners can rely on. Non-QM deals, Hutchens explained, are not always as smooth as they could be, and partnering with the right lender is key. This first deal can add or destroy a broker’s trust. When an originator works with a proven market leader, it can make a huge difference.
What matters, however, is the driving force behind the mortgage and real estate industries: bringing people into homes. Millions of Americans are moving now, and the opportunity to get the right deal can affect a creator’s success well beyond this year and beyond.
“According to a report by Zillow in 2021, the pandemic resulted in more than one in ten Americans moving in the past year,” Hutchens said. “This great reshuffle means millions of additional households are entering the property market, adding to what is already high demand and hurting low inventory levels. This puts an even higher priority for brokers and buyers to move with a sense of urgency when it comes to making an offer. When a realtor finds a buyer who loves the home but learns they haven’t prequalified due to agency guidelines, this is a moment when a creator’s non-QM expertise can prevent a realtor and a Borrowers get burned. When an originator works with a lender who definitely allows it, it becomes a one-stop shop. You can manufacture agency products, but you can also take over the non-QM side if business falls out of the agency. You can always be there to help. “
Learn more about how you can empower broker partners Read the Angel Oak Travel Guide here.