The challenge for lenders is being able to efficiently navigate these more complex, non-traditional loans. The low-rate environment and strong refinancing activity have fueled the mortgage industry for the last few years. However, these transactions are typically less complex and mostly employ basic underwriting practices supported through automated underwriting systems. The demand for manual underwriting significantly increases on non-QM loans but requires underwriters with extensive knowledge and expertise who can better understand risk profiles.Many lenders may now need to look outside their organizations to find such underwriters. Partnering with organizations who understand how to navigate this environment not only expands their market base but also can increase competitive advantages through increased service level agreements and turn times in this hyper-competitive housing market.
Senior loan officer (NMLS #828476) with Embrace Home Loans in Middletown, RI
We are navigating uncharted waters right now without the right equipment or even a baseline knowledge of what equipment, maps and charts are needed. Still, we’ve had similar financial cycles in the past which can help give some guidance on what lies ahead in the future.
There are a number of variables impacting the financial and housing markets today. The financial and psychological ramifications of the pandemic continue to surface. For many people, there have been shifts in lifestyles, as well as their employment and housing situations. People are looking for more security, especially when it comes to housing. They are seeking a piece of the American dream of home ownership at an almost unprecedented rate.
Inflation and the inability to get goods and services are also influencing consumers’ mindsets. The lack of housing inventory and the stepped-up demand for houses has caused not only home prices to increase in many parts of the country — rental prices are going up as well.
I best serve my community, my customers and business partners by staying in regular communication regarding products, rates and market shifts. There is no such thing as too much communication and education in the mortgage business and that’s particularly true during these trying times for homebuyers. I also am a firm believer in being prepared for different scenarios.