How you can capitalize on untapped opportunities in the non-QM sector
As the mortgage industry evolves, professionals are constantly searching for new avenues to expand their portfolio and client base. The non-qualified mortgage (non-QM) sector, often misunderstood and underutilized, offers significant opportunities for growth and service expansion.
In a recent in-depth interview with Jeff Lemieux, of Acra Lending, on MPA TV, insights were shared about the potential and the misperceptions of non-QM lending as we dive into 2024.
“Non-qualified mortgages are different than traditional mortgages primarily for two reasons,” Lemieux said.
He elaborated that non-QM loans are often made to entities like LLCs and designed for investors or businesses, broadening the scope beyond traditional consumer-focused lending. This unique aspect allows for broader inclusivity, enabling small business owners and investors to qualify where they might not under strict traditional criteria.
Despite recent challenges, including a shrinking borrower pool and rising mortgage rates, optimism for 2024 is fueled by the expected stabilization of interest rates.
“The biggest opportunity that we see is as rates come down, we’ll be able to grow our production,” Lemieux said. “We’ve had numerous competitors go out of business. We like competition, but there are fewer competitors. So, we do believe that we’ll continue to gain market share on our kind of standard non-QM loan business.”
Acra Lending, in particular, has expanded its offerings with a bridge lending or fix-and-flip program, providing financing to property investors. This program not only aids investors but contributes to housing supply by enabling the renovation and resale or rental of single-family homes.
Read more: Acra Lending embraces tech while retaining tried-and-true products
“One of the interesting facts about the US housing market is that very few apartments are built with a third bedroom,” Lemieux explained. “Generally, the need for that single-family home is that third bedroom as people have children and families grow. And so we see what we do as a real benefit for increasing the housing supply for the typical American family.”
Watch the new MPA episode featuring Lemieux to unlock the potential of non-QM lending in 2024.
