Non-QM focus a winning strategy for lender

“Sprout is guiding brokers through the non-QM process using high-touch service and high-tech tools to make the process easy, efficient and productive to help brokers build their business,” Pallante said. “For example, our Broker AdvantEDGE program helps brokers grow their book of business through innovative tools that improve the mortgage origination process from start to finish.”

The mission is to help a wider array of consumers achieve the American Dream of homeownership, he said. “And we will continue to focus on helping brokers and consumers whose needs are not being met by standard GSE mortgages. Self-employed borrowers, gig economy workers, new business owners, borrowers needing jumbo loans, and new entrants and veterans in the residential real estate investment market – Sprout provides quality mortgage solutions to these and many other residential home buyers.”

The non-QM emphasis comes at a time when rising rates are blamed for a slowdown in mortgage activity after a two-year boom fueled by record-setting property values. But Pallante suggested the resulting challenges are far more complex, and rising rates alone aren’t the sole culprit for the current housing activity slowdown.

“Rising interest rates are only one factor in the equation that is adding up to increased demand for non-QM mortgage loan solutions for residential buyers and investors,” Pallante said. “A nationwide housing shortage in the face of significant demand, surging home prices, the rise of non-traditional sources of income from the great resignation/gig economy/new business start-ups, and a growing and diverse real estate investor community – all these together are spiking demand for quality non-QM mortgage solutions and jumbo loan products.”