A non-qualified mortgage loan, commonly known as a Non-QM loan, is a type of mortgage loan where alternative methods are used for income verification. It could be through bank statements or done by using assets as income. The Non-QM loan is the option available for investors, foreign nationals, and the self-employed, as well as for borrowers with credit faults, such as foreclosures or prior bankruptcies. In short, for those who may not qualify for a conventional loan.
PrivoCrop has been providing support to Non-QM lenders for a long time. Here are the top 5 Non-QM Posts of 2021 that talk about Non-QM loan processing, documentation, scrutiny, and underwriting, etc.
A report from S&P Global predicted that Non-QM lending would bounce back to pre-pandemic levels back in Feb 2021. It attributed this prediction to the record-low mortgage rates. With the mortgage market undergoing an operational change owing to the pandemic and changing borrower profiles, processing support services have been gaining popularity, too. The rapid changes in the market have been influencing the norms too. The post explores why non-qualified mortgages are becoming more valuable for lenders supported by stats that show the current trends. Read to understand how processing support services for Non-QM lenders can simplify the transition and help to seize the opportunity.
Considering that the global markets have been changing rapidly, the mortgage demands have been on an all-time rise too. There have been people who have had to switch locations and those who have to move to different homes driven by remote and hybrid workplaces. There hence has been a growth in the number of borrowers and proportionally in the number of those looking for non-qualified mortgages. The post is a must-read for understanding how lenders can use this surge by optimizing business processes.
The World FinTech Report 2021 from Capgemini and Efma highlights that a pandemic-induced VUCA environment has forced investors to reconsider their funding decisions, as enthusiasm for late-stage mature FinTechs rises. Profitable FinTechs have followed a four-step strategy (Diversification, Orchestration, Monetization, and Expansion) for long-term growth, leading to intense competition industrywide. The mortgage market has been on a steady rise, however, the competition in the market has been increasing too. Smaller lenders with technological advancements can often offer customers faster responses, however, with greater risks. Experienced lenders may lose out on making the best of the opportunity because of a lack of technology. Read the post to know how this can be worked around to make the best of the opportunity.
The changing business conditions, borrower profiles, and increasing competition have been pushing mortgage lenders towards faster and more innovative strategies. Of the technology-driven changes, automation is known to reduce manual processes to a great extent. Read the blog to understand the development and progress of the mortgage market, its influence on the growth of the Non-QM market. It also discusses how specialized technology and automation can overcome functional challenges.
Modern technologies have influenced the mortgage industry considerably. With the cloud, Artificial Intelligence, etc., in the picture, the paper-heavy mortgage processing function has now become faster and efficient. Automation, in particular, has helped in simplifying workflows and reducing manual processes. The post covers how automation can benefit both QM and Non-QM markets.
Making use of the Non-QM sector depends on the right approach and the right workforce. PrivoCrop is one of the best servicers in the market and has successfully helped many Non-QM lenders. PrivoCrop has been using AI and machine learning technologies to automate Non-QM loan processing, making the processes accurate and simplifying complex tasks like pre-underwriting easier.