While the need for refinancing will never completely go away, we can safely say that interest rates have increased due to market conditions Take us past the height of the refinancing boom. That means smart Mortgage professionals should work ahead of the curve to expand and improve their buy pipelines. In a highly competitive real estate market, the strict guidelines on agency credit could prove too restrictive for an originator looking to close some of the gap between 2020 and 2021 volume. The answer for many is notQM and as more originators want to play in this area, a lender has expanded its suite of non-QM products.
This lender is Luxury Mortgage Corp. The veteran non-QM lender recently made a number of improvements, which CEO David Adamo (pictured) demonstrated to MPA to its originators who work with non-QM borrowers. The improvements include the lifting of the payout limits of up to 65% LTV, the reintroduction of a 40-year term option with a maximum LTV of 80%, loan amounts of up to USD 3.5 million with purchase and interest conditions and 2.5 million .USD on withdrawals and expanding maximum LTVs up to 90% with FICOs to 660. They also added bitcoin as an eligible asset and reserve under certain document types. All of this, Adamo explained, was accompanied by aggressive price improvements being introduced for all product types.
“We have implemented product and price improvements consistently and methodically as the non-QM market has been gaining momentum again and again over the past year,” said Adamo when asked why Luxury Mortgage is now introducing such a wide range of improvements.
He explained that these products are uniquely suited to our currently highly competitive housing market. They provide a level of liquidity that is essential for wider participation of borrowers in the real estate market. However, it is up to the brokers and originators to serve these borrowers, and Adamo believes that now is the right time to learn non-QM and start using these enhanced luxury mortgage products.
Adamo stated that for mortgage professionals looking to increase their purchasing volume, non-QM is the forward-looking business strategy. The mortgage space is very competitive and adding non-QM to your toolkit allows any mortgage professional to differentiate themselves in these markets.
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Those higher LTVs and lower FICO scores may raise the eyebrows of some mortgage experts, but Adamo pointed out that Luxury still adheres to the same strict lending standards. He stressed that their credit card extensions will be done responsibly and will serve to provide qualified borrowers with a clear net benefit and the ability to repay.
These improvements have also resulted in a number of price improvements. Adamo found that Luxury Mortgage has lowered its base rate in the range of 25 to 62.5 basis points depending on the document type. It has also lowered its minimum interest rates on full and old documents to 3.375% and cash flow loans for investors to 4.125%.
For mortgage professionals interested in learning more about the non-QM market, Adamo and the Luxury Mortgage team offer formal training through onboarding and support throughout the life of a loan. The account managers are seasoned professionals who work constantly with their broker and correspondence channels. A newly introduced tool for analyzing bank statements can provide important clarifications for applicants of bank statement programs.
Despite all price incentives and extended lending parameters, Adamo is of the opinion that the team of employees of the company is special about luxury mortgages in the non-QM area. For mortgage professionals looking to get involved with non-QM, he believes his team will make all the difference.
“Our elite team of account managers are rightly the best in the business,” said Adamo. “Everyone has deep experience in the non-QM area and decades of experience in wholesale with non-agencies. Originators who are not familiar with QM need this expertise to guide them and achieve a successful outcome for the borrower. Our outstanding employees in the areas of operations and underwriting are just as elitist and extremely service-oriented. We all work together to get business done here and we are not intimidated by non-QM loans or more complex loan scenarios. In fact, we shine when we can use our creativity. All we do is use common sense, a proactive approach, and empathy for our broker partners and borrowers. “