“Volumes are up – not just for us, but it seems like all non-QM lenders,” he said. “It’s all about consistency. The prime rush that was here all through the latter half of the pandemic has waned. Prime rates are volatile and brokers are finding a lot of consistency is through non-QM.”
Prime rates can move several times a day, and lately with many external variables appearing to potentially influence rates, consumers are given pause by these quick changes. On one day a borrower with a loan at a particular rate could receive $2,000 in credit and another $2,000 in buy-down fees for the same rate and loan. By contrast, non-QM programs and rates provide a haven from that volatility since rates adjust typically one, perhaps two times a month.
“Non-QM products back in full force, brokers and borrowers have the opportunity to refinance or purchase, utilizing their capital and assets in very productive ways,” Fisher said.
Non-QM is not only alternative-income bank-statement loans, but it can also mean a variety of asset-backed loan option that flex to the borrower’s needs. Full-doc to 1099 programs, investor DSCR programs and foreign national loans, the programs have grown to not only meet the demands of the market, they are replacing the lost refinance volume by allowing previously inaccessible borrowers to now access home and investor financing in a responsible manner.
Fisher said that more and more originators are adding non-QM products to their toolbox.