While still fairly new to the game, non-QM lending is becoming more and more popular by lenders – seeing a significant boost in usage from this time last year.
S&P Global Ratings had predicted that non-QM lending would double or even triple in 2018 and they’re not far off. The company pointed to a more liquid non-QM market driven by more efficient and improved securitization which would make this type of lending cheaper and lower spreads.
Experts say that non-QM loans tend to be absent risk layering – which means that they aren’t likely to perform as badly as Alt-A and subprime loans. 10 years ago in the financial collapse of 2008, we saw subprime loans destroy the market. This was due to applicants having no down-payments, bad credit scores, and very little verification of income (sometimes none at all). It was a recipe for disaster from the beginning.
With non-QM loans, applicants still have to satisfy the Ability-to-Repay rule, and at the very least show a lot of assets if their income is a bit unsteady or questionable. With these types of loans on the rise many aspiring home owners are now in a position to obtain a loan, and leads are being generated.
Lead Snap Marketing started generating non-QM leads in early 2018 with the increasing demand from our mortgage clients and the market. With these leads, like all of our others, you can apply several filters such as Loan Amount, Property Type, Credit Rating, State and more.