The uncertainty in the banking industry and the resulting pullback from the origination market has benefited non-QM players. But the ensuing secondary-market pricing pressure has also created liquidity woes and profit-margin challenges. Here's what non-QM lenders see on the horizon.
I was walking down North Wabash in Chicago yesterday and a beggar (is that politically correct?) yelled out at me, “You’re the reason this country has to put directions on cereal boxes!” Simple things like cereal boxes, shampoo, or soup didn’t used to have directions, but things are always changing. Including our industry. Another non-QM company appears to be exiting: As one AE wrote, echoed by a few others, “Athas Capital Group is shutting down its doors. We will be open for about two more months to fund out our remaining loans in the pipeline. But we are not allowed to submit any newer loans.” For confirmation or details, you should contact Athas Capital or your AE. Certainly the Agencies (namely Freddie Mac and Fannie Mae) are always changing, and Chicago is one of six cities (along with Atlanta, Baltimore, Detroit, Memphis, and Philadelphia) that are targeted by Fannie Mae for an Equitable Housing Finance Plan. Freddie has a similar plan wi
Ops. Mgt., MLO Jobs; Renovation, Docs, Retention Non-QM Training Tools; Product Updates May 11 2021, 8:22AM
The real estate and lending industries operate in a world filled with laws, lawsuits, and regulators. (The latest example is REX’s suit against Zillow and the National Association of Realtors – NAR - over the real estate segregation rule, which puts the interests of legacy real estate brokers before consumers.) Does this clip remind you of your Direct to Consumer Department? Hope not. And I hope that it’s not your Customer Complaint Department either. Here is something every compliance department should read: a National Law Review article pointing out the CFPB’s current thoughts on lending and servicing during the pandemic. Compliance departments are certainly aware of how compensation is paid to AEs and LOs. After analyzing data from its CompenSafe™ ICM platform, LBA Ware’s Q1 2021 comp report showed a slight decrease in basis points p