loans, is going to expand over the next few years. It’s
still far from being a household name like FHA, Fannie
Mae, or Freddie Mac, but expect the non-QM loan,
which still must meet ability-to-repay requirements,
to eventually be as familiar in the mortgage world as
jumbo, conforming and conventional loans.
The non-QM market is certainly something that
originators should continue to watch and learn about.
Although the market is smaller at this time, it will definitely expand over time, and will be something that
will grow into a more commonly requested and utilized loan option.
n n n
At the end of the day, the originators primed for success are knowledgeable, versatile, nimble and prepared.
They see the future but excel at navigating the present. And they are prepared to help any borrower — no
matter their needs or situation — find and get into their
dream home. n
Manufactured homes are not necessarily products
that all originators have had a tremendous amount of
experience dealing with. In this tight-inventory market, however, mortgage originators who are able to
guide buyers and help them qualify for all different
types of loans will be the most successful, and also the
individuals that real estate agents and other referral
partners will rely on again and again.
Originators should not be intimidated if they lack
a high level of experience with all the different
government-loan options available, such as renovation and the construction-to-permanent loans. Still,
originators should make the effort to become familiar with all the different programs and products that
are out there.
That includes loan programs offered by
government-sponsored enterprises (GSEs) Fannie
Mae and Freddie Mac — such as Fannie’s HomeStyle
Renovation and Freddie’s Home Possible loan offerings. It’s not just about choosing Fannie or Freddie.
It’s also about the downpayment and other costs. Is it
mortgage insurance terms?
Originators must be confident about the preapproval presented to the real estate agent. They need
to know that they are utilizing the best loan program
available for their borrowers — with the least number
of conditions. And, because home sellers are flooded
with offers, originators need to be able to run through
all the different program guidelines, confident in the
knowledge that the Smith family, for example, quali-fies for a 3 percent down Fannie Mae loan, or a 3. 5 percent FHA loan, or a 5 percent down Fannie Mae or
Freddie Mac loan, with the best possible mortgage
The future is now
To be a successful originator takes more than simply
being knowledgeable about current programs. It also
means polishing that crystal ball to see into the future.
Everybody talks about how the non-qualified mortgage (non-QM) market, which includes nonprime
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“To be a successful originator takes more than
simply being knowledgeable about current
programs. It also means polishing that
crystal ball to see into the future.”