Executive touched on three key areas where brokers can move the needle
To pinpoint the biggest opportunities in the non-QM market, brokers need to take a tactical and strategic approach, starting by mastering their guidelines.
“If you’re going to enter non-QM, I think you have to know your guidelines,” Deephaven Mortgage chief sales officer Tom Davis said in MPA TV’s latest non-QM power panel. “Obviously, if you know your guidelines, it allows you to differentiate yourself from every other competitor in the market. If you become the industry expert in your market, people will line up to do business with you. That’s what non-QM allows you to do.
“The opportunity in the non-QM space today is we’re in a purchase-heavy market. So, a lot of these originators are having to reinvent themselves. They’re going into Q4 and strategically planning 2023. And non-agency, non-QM has to be a part of their strategy. If it’s not, a lot of them are not going to survive.”
Davis underscored the importance of adding non-QM to a broker’s strategy can help them become market experts that investors trust.
“When you’re working with an investor, you have to have the right tools in order to be an investor that’s going to help you get to be a partner,” he said. “And we can talk about all those different tools whether it’s a structured scenario, calculator, flyers, etc., but the biggest thing is working with a partner who’s going to teach you about the product, help you leverage those products, leverage their resources and then use, teach you how to go out and find these products. A lot of these loan originators haven’t had to go out, or don’t know non-QM.
“So, you have to show them, hey, work with the realtor. The realtor is self-employed. They have friends that are self-employed. Realtors are investors. Teach them how to go in front of CPAs and accountants, and wealth managers, maybe for asset depletion or utilization. Maybe join the local REIA, a real estate investment community, or a club that meets once a month at a local Marriott. There are hard money lenders there. There are investors there. That’s a great place to go and find DSCR loans.
“If you train, you become a pro or an expert. I’m a firm believer in working with your investor, someone that’s all dedicated, that’s going to invest in you and help you get a lift into space. So I think the biggest opportunity for brokers is learning the product and becoming an expert in their space will allow them to penetrate realtor relationships and grow their business in today’s environment.”
You can watch the full non-QM power panel here: Thriving amid the turmoil.
