The first quarter of 2021 forced creators to rethink their business models. Rising rates are depressing refi volumes, with most experts predicting rates will rise by 2021. At the same time, the real estate market is warming up. Prices are still low enough to incentivize first-time buyers, and the COVID-19 pandemic has spurred a millennial move to the suburbs and suburbs that should have lasted a decade. A lender offers originators the opportunity to rethink their business models.
At an upcoming webinar, Michael Kirk (pictured), Vice President of Wholesale Sales at Acra Lending, Explain how his company’s non-QM product is set The service package can play a crucial role for originators who empathize with new market conditions. In a preview, Kirk shared with MPA the importance of versatility and flexibility in this new environment and how Acra’s unique offerings will serve originators who want to become more diverse and play an absolutely vital role as the market begins to tighten.
“I don’t think it’s a matter of whether creators are looking to the next level in the market,” said Kirk. “It’s a matter of ‘must’. Agency rates are rising in an unstable nation, and creators must consider their future pipelines and future business platforms. You must act now to determine what the future of your business will be for growth and stability. Despite having a record year, rising rates will separate creators from their competition. It will take something special to compete in this insane market and keep profitability up. “
This is something special for Kirk. It’s a set of diversified business plans that allow an originator to pursue a wide variety of key market segments. Acras core portfolio of non-QM Products play a key role in this and offer a deeper penetration of local recommendation networks. The creator who is familiar with non-QM simply gets more business from every referral partner they already have. The originator who doesn’t do this leaves money on the table for his competitors to take. In an increasingly zero-sum market, it’s a differentiator.
Not only does non-QM improve the presence of local referrals, Kirk also stated that an author with the right foundation can turn these products into a nationwide and nationwide reach. Perhaps even more important in the short term is that the flexibility of non-QM will be very helpful in a foreign buyer’s market that is full of catching up to do due to the pandemic. When these floodgates open, an accomplished creator is there with the right product.
According to Kirk, the biggest challenge with non-QM is the mindset rather than the eccentricities of a product. Creators might come in with misconceptions or expecting the process to be a hassle. If they can get over it and see the opportunity in the channel, Kirk believes they will realize that the non-QM process is a lot easier and more straightforward than they ever expected. The key is to move from a more cautious agency mindset to a more creative view that reflects the creativity of the non-QM process.
As the non-QM market itself becomes more competitive, Kirk stated that Acra’s mindset is key to what sets it apart. As an innovative lender in a vertically integrated ecosystem, they can experiment but know that the money will not be passed on to others. It treats brokers as partners and tries to train them in these product groups, regardless of their non-QM know-how. It offers a personalized marketing platform and supports brokers in selling these non-QM products. When the hurdles arise, the Acra team is there to help.
While Kirk expects the webinar to show brokers why they need to deal with non-QM now or are at risk of being left behind, he hopes it will also show them the kind of supportive culture that exists at Acra, one Culture that let them work with all of their mortgage partners.
“If you don’t enter the non-QM market, you will be left behind,” said Kirk. “That’s where the market goes. And Acra offers a great reward with limited risk for it. We want to help our partners grow because that is our culture. We believe that when all of our partners grow, our own growth is guaranteed failure. “
To learn more from Michael Kirk about how Acra can help diversify your portfolio, Register for the webinar here.