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“I think the hardest part for me was I’ve always been in growth mode my whole career, so I’ve never really had to lay people off, and I probably hung on to people a little longer than I should have just because I guess I had too big of a heart,” he said. This experience taught him the importance of making tough decisions for long-term stability and growth.
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The top originator also noted the current market gridlock caused by high-interest rates. He highlighted the financial implications of homeowners trying to upgrade to larger properties with higher interest rates. The significant increase in monthly payments often makes it financially impractical.
Engle explained: “You’re going to jump to double, sometimes triple your interest rate. It doesn’t make financial sense.” This scenario has resulted in a stagnation of the housing market, with homeowners opting to postpone moving or upgrading.
Pros and cons of non-QM
“I do non-QM when it makes sense,” said Engle, who mainly underwrites FHA, VA, conventional loans, and some jumbo. “Non-QM’s great, but the hardest part right now is the rates are pretty high. So, you take a normal borrower that might be getting 6.5%, and you throw them in non-QM, and now it’s 7.5% to 8.5%, even nine sometimes, depending on the credit score.”
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